The meeting takes place amid price increases towards the end of last year, despite markets remaining uncertain.
Members of the OPEC group of oil producers and their partners will meet via videoconference Monday to determine production levels for February, hoping to turn the corner in a difficult year.
The OPEC + ministerial meeting comes after oil consumption tanked in 2020 due to the COVID-19 pandemic and a price war between Saudi Arabia and Russia.
Despite a price increase towards the end of last year, black gold market levels remain uncertain.
Following their last summit, from November 30 to December 3, OPEC + members agreed to increase production by half a million barrels per day in January.
The 13 members of the OPEC cartel, led by Saudi Arabia, and their six allies led by Russia, also agreed to meet at the beginning of each month to decide on any adjustments to production volumes for the following month .
Russia and Saudi Arabia are the second and third largest oil producers in the world, respectively, after the United States.
The decision illustrates OPEC’s desire to maintain a strong influence in the oil market and the gravity of the situation for crude oil producers last year.
Before the pandemic, OPEC members were satisfied with two summits a year at the organization’s headquarters in Vienna.
“Finally, we saw a strong demonstration of OPEC + will and ability to manage the market, laying the foundation for Brent’s recovery to over $ 50 a barrel, despite remaining demand uncertainty in the market,” said JBC Energy analysts in a statement.
The two reference contracts, North Sea Brent Crude and West Texas Intermediate (WTI) oil, both ended the week at around $ 50 a barrel, well below early 2020 prices, but well off last year’s lows.
In March, Moscow and Riyadh embarked on a brief but intense oil price war, causing prices to plummet.
On April 20, West Texas Intermediate (WTI) crude oil collapsed to minus $ 40.32 a barrel – meaning producers paid buyers to take the oil off their hands.
The climate between the two oil giants has since eased, with the Russian and Saudi energy ministers meeting in mid-December in a show of unity.
However, it remains difficult to predict the evolution of demand as governments begin to roll out coronavirus vaccination programs.
Last month, OPEC predicted a slight recovery in the market, but noted persistent uncertainties, especially in the transport sector.
Despite the weight of the OPEC + countries, countries outside the system have a major effect on the oil market; primarily the United States, which still produces 11 million barrels of crude oil per day.
OPEC will also have to pay attention within its ranks to developments among the three members who have been exempted from quotas: Libya, Iran and Venezuela.
Production in Libya was almost wiped out by civil strife, but has been on the rise since October following the signing of a ceasefire agreement.