OPEC fears its record oil cuts will fail to rebalance the market and solve the worst glut in history if a second wave of the Covid-19 pandemic undermines an economic recovery later this year, according to internal OPEC research seen by Reuters.
OPEC, Russia and their allies, a group known as OPEC+, said they would ease record oil curbs from Aug. 1 citing a gradual recovery in demand as global lockdowns loosen up.
The group expects oil demand to climb by 7 million barrels per day (bpd) in 2021 after falling 9 million bpd this year. OPEC wants to lift its output by 6 million bpd in 2021.
