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OPEC+, Saudi Arabia unveil oil production targets for February-March 2021

The OPEC+ has agreed to gradually return 2 mb/d to the market and reconfirmed its decision to increase production starting in January 2021 and to adjust the production reduction from 7.7 mb/d to 7.2 mb/d. Under the agreement, most of OPEC+ oil producers will maintain their current production level, while Russia and Kazakhstan will raise their crude oil production by a combined 75,000 bbl/d in February 2021 and a further 75,000 bbl/d in March 2021. On the contrary, Saudi Arabia has pledged extra, voluntary oil output cuts of 1 mb/d in February and March 2021. Consequently, the OPEC+ production cut (including Saudi Arabia's additional commitment) will increase from 7.2 mb/d in January 2021 to 8.125 mb/d in February 2021 and decline to 8.05 mb/d in March 2021.

In December 2020, the OPEC+ agreed to relax crude oil production cuts by 500 kb/d, from 7.7 mb/d to 7.2 mb/d as of January 2021. In addition, the group decided to hold monthly OPEC and non-OPEC ministerial meetings starting January 2021 to assess market conditions and decide on further production adjustments for the following month, with further monthly adjustments being no more than 500 kb/d.