OPEC

The ongoing coronavirus crisis continues to cloud the outlook, and analysts expect this to reaffirm Saudi Arabia’s caution about the global economic recovery.

Oil prices jumped on Thursday after OPEC and its oil-producing allies said the group would keep production largely steady through April.

Analysts broadly expect OPEC+ to hike output from current levels, but questions remain over how much exactly and which countries will be affected.

Goldman Sachs sees demand rebounding by March, with the arrival of warmer weather and increased vaccinations.

OPEC and its oil-producing allies agreed to increase production by 500,000 barrels per day beginning in January.

OPEC and its allies have failed to come to an agreement over an extension to their production cut agreement, and talks have been postponed until Thursday, Reuters reported on Monday.

OPEC+ is expected to consider delaying its output increase at its meeting this week, but there are “some cracks in the foundation,” said Herman Wang of S&P Global Platts.

OPEC+ is scheduled to begin a two-day meeting Monday to discuss the next phase of its oil production policy.

The IEA said it does not expect the prospect of a coronavirus vaccine to significantly boost demand “until well into next year.”

OPEC and allied nations have agreed to extend a production cut of nearly 10 million barrels of oil a day through the end of July, hoping to boost energy prices hard-hit by the coronavirus pandemic