OPEC meeting may announce a reduction in production cuts

According to CNBC's July 13th news: Monday's Asian market crude oil prices fell on Monday, as traders paid attention to this week's OPEC technical meeting, it is expected that the meeting will recommend the relaxation of supply reduction measures.

As of 01:14 GMT, Brent crude oil fell 27 cents to $42.97 per barrel, while US West Texas Intermediate crude oil fell 28 cents to $40.27 per barrel.

The price of oil did not change much last week, and the outbreak of the epidemic prompted many states to enforce stricter travel restrictions, which may inhibit the recovery of oil demand in the world’s largest oil consumer.

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

Since May, the Organization of the Petroleum Exporting Countries and allies, including Russia, has reduced daily output to a record 9.7 million barrels, and oil prices have since rebounded sharply from a few decades in April.

The OPEC Ministerial Joint Oversight Committee will meet on Tuesday and Wednesday to recommend the next round of production cuts.

As global oil demand recovers and oil prices rebound, OPEC and Russia are expected to ease production cuts.

AxiCorp chief global market strategist Stephen Innis said in a report: "OPEC plans to relax production cuts next month, and the potential rebound in US production may increase supply pressure."