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UPDATE 1-OPEC experts meet as rising oil prices mask demand worries

Published 02/02/2021, 14:31
Updated 02/02/2021, 14:36
© Reuters.

(Adds lower demand estimate)
LONDON, Feb 2 (Reuters) - OPEC+ experts were holding a
virtual meeting on Tuesday as a rise in oil prices to their
highest in almost a year masked persistent concerns about a
recovery in oil demand.
The Joint Technical Committee began its meeting at about
1200 GMT and is reviewing the demand outlook and countries'
compliance with agreed output cuts. A ministerial panel meets to
review the market on Wednesday.
Oil, which hit historic lows last year as demand collapsed
due to the pandemic, has rallied thanks to record OPEC+ output
cuts.
On Tuesday, crude hit its highest level in almost a year at
close to $58 a barrel.
"A positive start," said one OPEC delegate. "The group wants
a quick meeting with a positive agenda."
However, there is concern about the pace of demand recovery.
An OPEC document prepared for the JTC and seen by Reuters
lowered oil demand growth this year to 5.6 million barrels per
day (bpd), 300,000 bpd less than OPEC's most recently released
estimate. OPEC has cut the forecast repeatedly since last July as the
impact of the pandemic lingers. OPEC/M
The JTC meeting and the ministerial meeting on Wednesday are
not expected to recommend any adjustments to oil output policy,
two OPEC sources said.

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