A "nodding donkey", also known as an oil pumping jack, was seen in an oilfield in the Republic of Bashkortostan (Russia) on Thursday, November 19, 2020.LONDON A group consisting of some of the most powerful oil producers in the world will meet Thursday to discuss the next phase of production.OPEC and non OPEC partners will meet via videoconference at 2 p.m. London Time.This meeting is scheduled at a time when OPEC+ remains optimistic about improving market conditions and fuel demand growth after a sharp rebound of oil prices in the first six months.In order to support oil prices during the historic fuel demand shock and coronavirus pandemic, the Middle East-dominated producer group agreed on massive crude production cuts for 2020.Since then, the group, headed by Saudi Arabia, has begun monthly meetings to help navigate production policy. It has already announced plans for increasing supply by 2.1 millions barrels per day between May-July. The group will decide whether to keep production policy the same or increase supply.Analysts predict that August will see an increase of approximately 500,000 barrels per hour.Chris Midgley is the global head of analytics for S&P Global Platts and told CNBC via email, that OPEC kingpin Saudi Arabia will likely keep a "cautious approach" to its production policy. Riyadh wants to see the global demand rise before adding more supply, and he expressed concern about Iranian oil returning to the market.Midgley stated that OPEC was working hard to maintain attractive prices and consumer confidence, while also limiting supply ahead of weaker demand in the Autumn shoulder period.
