OPEC and its non-OPEC oil-producing allies met today to discuss production plans, as forecasts for oil demand continue to decline. As expected, the group, known as OPEC+, did not announce new production cuts at the meeting, reports CNBC.
In July, OPEC+ decided to reduce oil production by 7.7 million barrels per day through the end of 2020. Earlier this year, some countries did not adhere to production limits, and now Iraq and others plan to keep production below quotas in September to make up for that increase in supply, according to the report.
The discussions come after the International Energy Agency (IEA) lowered its demand forecast in its recent September monthly report. The IEA cited a resurgence in COVID-19 cases in many countries as muting the recovery in the demand for travel and commuting.
An OPEC statement reflected those views as the Joint Ministerial Monitoring Committee (JMMC) noted the increased cases in some countries, and emphasized the “importance of being pro-active and pre-emptive and recommended that participating countries should be willing to take further necessary measures when needed.”
In an effort to maintain oil price levels, the committee also stressed the “critical importance” of adhering to production quotas, the report said. Oil prices gained more than 2% today, though still remain down 35% since the start of the year.
Earlier this week, energy giant BP (NYSE:BP) released its energy outlook through 2050. It noted the world’s move toward lower carbon, and listed three possible scenarios for that evolution. It estimated that though demand for energy will increase, the demand for oil will decrease by between 10% and 80% over the next 30 years.