The OPEC + countries agreed on the timing of the increase in oil production at a meeting of the ministerial monitoring committee of the alliance. It was decided not to change the terms of the agreement adopted a month ago until the end of September 2021. Russian Energy Minister Alexander Novak told about this in interview TV channel “Russia-24”.
“The point is that OPEC + will increase production by 350 thousand barrels per day in May, by the same figure in June and by 440 thousand barrels per day in July,” Novak explained. According to him, this will allow reaching the planned levels of oil production in 2021 “taking into account the growth in demand and the gradual recovery of the market.”
At the same time, the minister noted that the increase in the number of coronavirus infections in a number of countries raises concerns in the market regarding further growth in demand. For this reason, the OPEC + countries have decided not to change the previously planned oil production figures. Novak noted that the execution of the OPEC + deal in March was 113 percent, which can be considered the highest indicator for the entire period of the agreement.
The minister also called the situation on the market positive and expressed hope that the oil price will stay at $ 62-66 per barrel until the end of the year.
For the first time, the OPEC + deal, in which OPEC members as well as third-party partners, including Russia, participate, was concluded at the end of 2017. Subsequently, it was repeatedly extended, and the conditions and volumes of production cuts were revised. In March last year, the main participants failed to agree on another extension, as a result of which the agreement collapsed, and world oil prices fell sharply. A month later, the parties were able to come to new agreements.
#OPEC #countries #agree #timing #increase #oil #production
source https://pledgetimes.com/opec-countries-agree-on-the-timing-of-the-increase-in-oil-production/
Disqus comments