OPEC-Led April Meeting Postponed

OPEC-Led April Meeting Postponed

The Organization of the Petroleum Exporting Countries (OPEC) and its allies have discussed canceling the summit that was supposed to be held in April but has been postponed to June 25-26, Reuters reported.

The meeting might even be canceled to assess the impact of production cuts on the market, especially under US sanctions on Iran and the crisis in Venezuela. Hence, it will be too early to decide on production policy next month.

“As long as the levels of inventories are rising and we are far from normal levels, we will stay the course, guiding the market toward balance,” said Khalid Al-Falih, the Saudi Minister of Energy.

OPEC’s decision is mainly determined by inventory levels and oil investments, Al-Falih explained. Moreover, the oil sector estimates that $11 trillion of investments will be needed over the coming two decades to meet the growing demand.

OPEC and its allies agreed in December 2018 to cut output by 1.2 million barrels per day (b/d) during the first half of this year in an effort to restore market balance and avoid a fall in crude prices due to a supply glut.

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