(Updates with details, background)
LONDON / MOSCOW, Jan 3 (Reuters) – OPEC and its allies, led by Russia, stand ready to unveil their plans for a gradual increase in oil production of 2 million barrels per day in the coming months ahead according to market conditions, OPEC Secretary General Mohammad Barkindo said Sunday.
Barkindo was speaking at a meeting of OPEC experts and allies, an organization called OPEC +, according to comments published by OPEC. OPEC + will meet Monday to decide on output policies for February.
In December, OPEC + decided to increase production by 0.5 million bpd from January as part of the 2 million bpd increase but some members have questioned whether another increase is needed from February due to the spread of coronavirus infections.
OPEC + had to cut production at its highest level in 2020 as global anti-virus measures hampered fuel demand.
OPEC + cut output by 9.7 million bpd initially, then reduced cuts to 7.7 million and eventually to 7.2 million from January.
Barkindo has now said that OPEC expects global oil demand to rise to 95.9 million bpd in 2021, or 5.9 million bpd from 2020, as the global economy is expected to grow 4.4%.
Even though the development of coronavirus vaccines has brought hope into the global economy and oil markets, the rise in oil demand would still not drive consumption to pre-pandemic levels of around 100 million bpd.
OPEC’s latest forecast in December was lower than the previous forecast of a 6.25 million bpd increase in 2021 due to the visual impact of coronavirus pandemic. (Reporting by Vladimir Soldatkin and Alex Lawler; Writing by Dmitry Zhdannikov; Editing by Alison Williams and Susan Fenton)