Oil falls, heads for weekly decline as virus cases hit record


However, prices climbed more than 2% on Friday after the International Energy Agency raised its 2020 oil demand forecast by 400,000 barrels per day.

"Saudi Arabia and Nigeria reiterate their firm commitment to the Opec+ agreement and to the level of production cuts to reduce output", the countries said. In the case of Iran, exports fell from 60.519 billion dollars in 2018 to almost 19.233 billion in 2019, a 68 percent decline, the survey noted.

The oil market is getting closer to balance as demand gradually rises, OPEC's secretary general said on Monday.

Brent futures (BZ=F) were down 1% to $42.80 per barrel on Monday morning in London, while crude futures (CL=F) fell 1.1% to $40.09 per barrel.

OPEC+, the oil alliance led by Saudi Arabia and Russian Federation, is close to a deal that will take it to the next stage of the historic agreement signed in April to limit global crude production. "Global oil demand is now expected to come close to pre-coronavirus levels only in the second half of 2021".

Meanwhile, OPEC+'s Joint Ministerial Monitoring Committee will meet Wednesday to assess whether the 23-nation alliance should keep 9.6 million barrels a day of output off the market for another month, or restore some supplies as originally planned and taper the cutback to 7.7 million barrels a day.

High on the agenda of the seminar was an exchange of opinions on the methodology of calculation of crude oil production indicators with representatives of secondary information providers.

OPEC expects to cover the lion's share of the massive projected demand spike in 2021 with demand for its crude rising by 6 million bpd to reach 29.8 million bpd.

California shuts restaurant dining rooms in 19 counties, MI closes bars
Restaurants, however, are not covered by the order yet but owners have been told to shift their operations to an outdoor setting. Newsom noted that counties with mandatory closures should consider cancelling firework shows if they haven't done so already.

Oil cartel Opec is due to hold a meeting on Tuesday and Wednesday to discuss its next move.

The increase in supply would come as the still-raging pandemic clouds the demand outlook.

But analysts say that the actions by OPEC and its allies could be outweighed by the impact of the pandemic on demand.

The cuts, plus reduction in the United States of around 1.3 to 1.5 million barrels a day have helped stabilise prices around the high $US30 to low $US30 a barrel for USA crudes and Brent style oils.

Brent crude, which is the global benchmark for oil, is down around 30% this year, while US-traded West Texas Intermediate (WTI) fell below zero at one point in April.

OPEC cut its production by 1.86 million bpd, or six per cent, last year, while non-OPEC output grew by 1.3 million bpd, or 2.9 per cent, the report showed.

The Journal, citing sources, said Saudi Arabia was leading a push within the organisation to increase production.