OPEC experts meet as rising oil prices mask demand worries

OPEC+ experts were holding a virtual meeting on Tuesday as a rise in oil prices to their highest in almost a year masked persistent concerns about a recovery in oil demand. A ministerial panel meets to review the market on Wednesday. Oil has rallied from historic lows reached last year as demand collapsed due to the pandemic thanks to record OPEC+ output cuts.

OPEC+ experts were holding a virtual meeting on Tuesday as a rise in oil prices to their highest in almost a year masked persistent concerns about a recovery in oil demand. The Joint Technical Committee began its meeting at about 1200 GMT and is reviewing the demand outlook and countries' compliance with agreed output cuts. A ministerial panel meets to review the market on Wednesday.

Oil has rallied from historic lows reached last year as demand collapsed due to the pandemic thanks to record OPEC+ output cuts. On Tuesday, crude hit the highest in almost a year close to $58 a barrel. "A positive start," said one OPEC delegate. "The group wants a quick meeting with a positive agenda."

But there is concern about the pace of demand recovery. OPEC has repeatedly lowered its forecast of this year's oil demand recovery as the impact of the pandemic lingers. The JTC meeting and the ministerial gathering on Wednesday are not expected to recommend any adjustments to oil output policy, two OPEC sources said.

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