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ENERGY NEWS
MIDDLE EAST Energy Review By Tsvetana Paraskova
The Middle East was once again in the spotlight of the global oil and gas markets this past month. The OPEC+ group and one of its leaders, Saudi Arabia, decided to gradually ease their oil production cuts, while Iran began talks with the world powers, including indirect talks with the United States, about a potential return to the nuclear deal that could ultimately lead to the lifting of the US sanctions on Iran’s oil exports. Oil exporting nations in the Middle East are set to benefit from the recent recovery in oil prices and from the expected rise in global oil demand as the world emerges from lockdowns, the International Monetary Fund (IMF) said in its latest outlook on the region in April, expecting the fiscal breakeven oil prices of the major Middle Eastern oil producers to decline in the next two years.
Several major agreements and contracts with major oil and gas firms were also announced in the Middle East in the past few weeks.
www.ogv.energy I May 2021
OPEC+ Eases Cuts in Sign of Confidence in Oil Demand Growth The OPEC+ alliance decided at its meeting in early April to gradually add over 1 million barrels per day (bpd) of oil supply on the market over the next three months. The group is set to increase its production by 350,000 bpd in each of May and June and by more than 400,000 bpd in July. Additionally, Saudi Arabia will also gradually ease its unilateral cut of 1 million bpd over the next few months, beginning with monthly production increases of 250,000 bpd in each of May and June.
The decision from OPEC and its allies again surprised the oil market, which was largely expecting the coalition to roll over the April level of cuts into May. OPEC+, however, signalled with the planned easing of the cuts that it sees demand improving with people travelling more and economies stimulating growth with relief packages.
Iran Could Legitimately Return Oil to the Global Market Iran and the signatories to the Joint Comprehensive Plan of Action (JCPOA) started talks in Vienna about a possible return of the Islamic Republic and the United
