OPEC+ members agree to ramp up output by 400,000 barrels per day amid soaring oil prices

OPEC+ members agree to ramp up output by 400,000 barrels per day amid soaring oil prices

The cartel members and their allies, including Russia, Mexico, and Bahrain, will increase their output by 400,000 barrels a day from August. Production is expected to be raised until all of the previously halted output is restored.

The deal is expected to see the OPEC+ countries ramping up their total output by some two million barrels by the year’s end. The monthly production increases would then continue next year. The cartel and its allies also announced that they have extended the overall agreement until December 2022. It was previously scheduled to expire in April 2022.

The agreement has become a sign of the strong bond between the cartel members demonstrates that “OPEC+ is here to stay,” Saudi Energy Minister Prince Abdulaziz bin Salman told reporters following the video conference between members.

The decision was sparked by an increase in oil prices, which have hit a three-year record. The price of Brent crude has recently risen above $75 per barrel amid recovering oil demand.

Some media, including the Financial Times, reported that the prices could go up even further, as the planned output increase might not be enough to satisfy the soaring demand.

“The Meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement,” OPEC said in a statement after the talks.

Back in 2020, OPEC+ cut their production by a record 10 million barrels per day as lockdowns and flight bans led to a steep drop in demand. The oil exporters then gradually reinstated some supply, but they are still withholding some 5.8 million barrels per day of output. The cartel and its allies are expected to return to the pre-pandemic output levels by the end of 2022 if the agreement holds.

The deal also included a compromise between OPEC members Saudi Arabia and the United Arab Emirates. The two Gulf nations were engaged in a dispute, as the UAE was unwilling to extend the previously reached supply cut agreement beyond April 2022 without raising its own output quota.

The agreement raises the UAE’s production baseline from 3.2 million barrels per day to 3.5 million barrels per day starting May 2022, various media outlets reported. "We support strongly the agreement reached," UAE Minister Suhail al-Mazrouei told an Egyptian broadcaster.

Other members of the OPEC+ agreement, including Saudi Arabia, Russia, Kuwait, and Iraq, will also see their quotas raised. Russian Deputy Prime Minister Alexander Novak said on Sunday that his nation would be increasing its output by 100,000 barrels per day each month starting August and will reach a pre-pandemic production level in May 2022.

Russia will produce an additional 21 million tons of oil this year and next, he added.

If you like this story, share it with a friend!

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

The measure targets imports of seamless carbon and alloy steel standard, line and pressure pipe (seamless pipe) from Russia, South Korea and Ukraine.Imports of Russian pipes are now subject to a tax
подробнее...

Christy Ai explains why hackers attacked the blockchain network and what’s the motivation behind such heists.For more stories on economy & finance visit RT's business
подробнее...

Max and Stacy discuss why the country’s geopolitical position along the Chinese Belt and Road project is so important for Beijing.For more stories on economy & finance visit RT's business
подробнее...

Boom Bust’s Christy Ai explains whether consumers will now have to pay more for their electronics.For more stories on economy & finance visit RT's business
подробнее...

In 2019, the sector managed to raise a modest revenue of around $23,000, the agency based in the Indian city of Noida said.According to the study, 819,000 EVCS units were sold in pre-pandemic 2019,
подробнее...

"If the initial estimates are confirmed and exploration success is achieved, the Iranian sector of the Caspian Sea will play a significant role in gas exports to Europe in the near future, in which
подробнее...

China is planning a huge green hydrogen project using solar and wind power for its Inner Mongolia region. A cluster of plants will be constructed in the cities of Ordos and Baotou, expected to use
подробнее...

He asks Collins if China is in the same position as the US was in the post-World War II period.For more stories on economy & finance visit RT's business
подробнее...

Under a merger agreement signed on August 20, Ben Gang, currently owned by the Liaoning Provincial Property Management Committee, will donate 51% of the company’s shares to Ansteel, becoming its
подробнее...

Bitcoin reached the key psychological level on Sunday, and was trading at nearly $50,200 on Monday, marking a weekly growth of more than 6%.The cryptocurrency market continued to rebound after
подробнее...

For the past two decades, some 80% of Afghanistan's budget has been financed by the US and other international donors. Now, it’s all gone. Last week, the IMF decided that Afghanistan would no longer
подробнее...

The new regulation will come into force on Sunday.To work in Russia, foreign insurers will have to provide proof of assets worth at least $5 billion and obtain permits from the Bank of Russia, which
подробнее...

Nord Stream 2 AG, a Swiss-registered company, was seeking an exemption from the provisions of the EU Gas Directive adopted by the bloc in 2009. The set of rules designed to boost competition in the
подробнее...

According to Gascade, gas pumping via the Yamal-Europe gas pipeline surged by 77% (from 4pm to 5pm) to 2.71 million cubic meters per hour from about 1.5 million cubic meters per hour. European gas
подробнее...

The NASDAQ index reached an all-time high of 15,129 points in Friday trading. The S&P 500 broad market index rose 0.88% to 4,509 points, breaking the 4,500 mark for the first time in history. The Dow
подробнее...

“The European Commission initiated a probe within the WTO (World Trade Organization) in July regarding Russian government procurement rules infringing upon the rights of European producers. The start
подробнее...

The forum’s key goal is to expand the economic development of Russia’s Far East and international cooperation in the Asia-Pacific region. The announced events include panel sessions, roundtable
подробнее...

Growth in the first quarter of the current fiscal year, which starts on April 1 in India, is mainly attributed to a low base performance in the previous quarter due to the coronavirus pandemic. The
подробнее...