VG 10 bitumen
In this article, we will analyze the highly probable situation in which the VG 10 bitumen market and price will change. Respectively,
the OPEC plus decisions as we know is the most dominant factor in the oil market.
OPEC Plus decisions in 2021
OPEC Plus agrees to increase daily oil production by 500,000 barrels in
January 2021. According to a new agreement between the
Organization of Petroleum Exporting Countries and Russia,
the OPEC Plus coalition will cut production by 7.2 million barrels per
day in January 2021, equivalent to 7% of global oil demand,
which is 500,000 barrels less than the current level. In other words, OPEC
and Russia agreed to slightly increase production to 500,000 barrels per day
from the beginning of January next year, but failed to agree on a broader,
longer-term production policy for next year, Reuters reported.
How the VG 10 bitumen market changes?
This increase in production means that the Organization of Petroleum
Exporting Countries and Russia will reduce production by 7.2 million barrels
per day, equivalent to 7% of global oil demand, during the OPEC Plus coalition. Additionally, this figure is currently 7.7 million barrels per day. Besides,
this production limit is under measures to counter low oil demand amid
the second wave of the Coronavirus epidemic. Needless to mention that
we expected The OPEC Plus coalition to maintain its current production
decline at least for the first time next year. However, after rising oil
prices following the approval of the Corona vaccine, many producers
questioned the need to continue reducing production.
VG 10 bitumen
According to OPEC Plus sources, Iraq, Nigeria and the UAE agreed to
increase production in 2021. Russian Deputy Prime Minister Alexander Novak
said the coalition would meet every month to decide on production policy
But , after January, and that the group’s monthly output would not exceed
500,000 barrels per day. Novak said we would extend the reduction in
forced production for countries that have had surplus production in
recent months until March 2021.VG 10 bitumen
Moreover, Saudi Oil Minister Abdul Aziz bin Salman said the decision
at Thursday’s meeting was “very difficult” due to disagreements among members.
Also , OPEC Plus should balance rising oil prices and contributing to the budgets
of producing countries, but not so much in favor of increasing US production.
Brent crude rose 1 percent to $48.71 a barrel after OPEC’s decision. In sum,
these measures will affect the bitumen and oil market notably.
