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Joint Technical Committee Concerned About India’s Oil Demand

The Joint Technical Committee of OPEC+ is concerned about the growing coronavirus case numbers in India, Japan, and Brazil. The committee is responsible for assessing oil market fundamentals. It is also tasked with monitoring which member countries are complying with the production cut quotas and which are not.The Joint Technical Committee is not changing its oil demand outlook at this time, but the group is keeping an eye on surging coronavirus cases in some substantial oil importers.

India is one of the world’s third-largest oil importers which hit another high in the number of its new coronavirus cases. It is the fifth day in a row for such record-setting. More than 350,000 new cases reported on Monday, the Asian nation has hit a world record for the greatest number of new cases. For India, this is a health crisis of immense proportions. For the global oil markets, it means a slower recovery. India imports more than 4 million barrels per oil every day.Japan is the world’s fourth-largest oil importer and fifth-largest oil consumer which is also struggling with an increase in the number of new coronavirus cases, as it has been slow to roll out vaccines. Japan is also one of the world’s largest LNG importers.

The Joint Technical Committee, which is meeting before the full ministerial meeting that will take place later in the week on Wednesday. It is still weighing the impact of various lockdowns on the oil markets.Recently the OPEC+ pane revised downward its oil demand estimates at Saudi Arabia’s prodding, just before the group decided to ease production quotas for its members. Oil prices were down on Monday afternoon but pared earlier losses. At 5:00 p.m. ET, Brent crude was trading at $65.70, down $0.41 on the day.

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