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· The Organization of Petroleum Exporting Countries (OPEC) and its allies recently agreed to increase global oil production by 400,000 barrels per day
· OPEC and its Russia-led oil-producing allies, OPEC+, agreed to increase barrels of bottled-up crude over the next two years
· They will be committing to restore all of the cuts they made at the start of the pandemic. The oil cartel announced this strategy as economies pick up and crude demand recovers across the globe
The Organization of Petroleum Exporting Countries (OPEC) and its allies recently agreed to increase global oil production by 400,000
barrels per day. OPEC and its Russia-led oil-producing allies, OPEC+, agreed to increase barrels of bottled-up crude over the next two years. They will be committing to restore all of the cuts they made at the start of the pandemic. The oil cartel announced this strategy as economies pick up and crude demand recovers across the globe.
The new adjustment will take effect from August until December 2021. OPEC+ agreed in the spring of 2020 to cumulatively cut a record 10 million barrels per day of crude production. This was due to the pandemic induced demand constraints. Later the cut was whittled down to about 5.8 million barrels per day.
The 19th OPEC and non-OPEC ministerial meeting held recently noted that worldwide oil demand showed clear signs of improvement. International benchmark Brent crude is up 43% year-to-date and up more than 60% from this time last year, with many forecasters expecting to see oil trading at US$80 a barrel in the second half of 2021. Brent closed at USt $73.59 a barrel at the end of the trading day on Friday.
