The 15th OPEC and non-OPEC Ministerial Meeting was held today and we reviewed the situation, he said. “Generally, OPEC and non-OPEC members stayed committed to the pact although some members failed to comply fully which caused other members’ complaint. So, it was decided to allow them to compensate for their non-compliance until September.

Global economy is expected to grow by 5 percent. Oil demand is also forecasted to increase by 5.6 million bpd as business activities would rebound, he said, adding “global oil demand decreased by 9.6 million bpd in 2020 compared to 2019 and it has yet to reach 2019 levels.”

Given the successful vaccination as well as the allocation of 1900 billion dollars by the U.S. administration as economic stimulus, OPEC+ agreed to raise oil output by 350,000 in May and June, and by over 400,000 July in order to avoid market volatility and support prices. The group also decided to hold monthly meeting to examine the condition in order to cut oil production, if needed, to avoid instability in the market.

Venezuela, Libya and Iran are still exempt from any cuts as they produce less than their traditional capacity and their historic right due to the U.S. pressure, he said.