OPEC+ countries agree to boost oil production
Xinhua
19 Jul 2021, 02:18 GMT+10
VIENNA, July 18 (Xinhua) The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries, known as OPEC+, agreed in an online meeting on Sunday to boost oil production by 400,000 barrels a day as demand increases. OPEC and its non-OPEC allies also reached a deal to phase out the cut of 5.8 million barrels per day of oil production by September 2022 subject to market conditions. Last year OPEC+ cut production by a record 10 million barrels per day (bpd) amid a pandemic-induced decrease in demand and dropping prices. The adjustment was slowly reduced and currently stands at 5.8 million barrels.
Source: China State Council Information Office
The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries, known as OPEC+, agreed in an online meeting on Sunday to boost oil production by 400,000 barrels a day as demand increases.
OPEC and its non-OPEC allies also reached a deal to phase out the cut of 5.8 million barrels per day of oil production by September 2022 “subject to market conditions.”
Last year OPEC+ cut production by a record 10 million barrels per day (bpd) amid a pandemic-induced decrease in demand and dropping prices. The adjustment was slowly reduced and currently stands at 5.8 million barrels.
In its statement, OPEC+ said that countries had agreed to adjust upward their overall production as from August and then assess market developments and participating countries’ performance in December.
Oil prices fell more than 1% on Monday, hit by an agreement over the weekend within the OPEC+ group of producers to boost output after an earlier pact fell apart due to objections from the United Arab Emirates (UAE). Brent crude was down $1, or 1.4%, at $72.59 a barrel by 0037 GMT, after falling nearly 3% last week. U.S. oil was down 94 cents, or 1.3%, at $70.87 a barrel, having declined almost 4% last week. OPEC+ ministers agreed on Sunday to increase oil supply from August to dampen prices that earlier this month climbed to the highest in around two and a half years as the global economy recovers from the COVID-19 pandemic.
Article content
LAUNCESTON The OPEC+ deal to boost crude oil output from August was always the most likely outcome to the producer group’s earlier impasse, and it should be enough to end market talk of $100 a barrel oil, at least for now.
OPEC+ ministers agreed on Sunday to boost production by 400,000 barrels per day (bpd) from August to December, adding a total of 2 million bpd to global supply by the end of the year.
We apologize, but this video has failed to load.
Try refreshing your browser, or OPEC+ deal should end $100 a barrel crude oil predictions: Russell Back to video
Aaron Sheldrick
1/2
A sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant/File Photo
Read More
TOKYO, July 19 (Reuters) - Oil prices fell more than $1 a barrel on Monday, after the OPEC+ group of producers overcame internal divisions and agreed to boost output, sparking some concerns about a crude surplus as COVID-19 infections continue to rise in many countries.
Brent crude was down $1.08, or 1.5%, at $72.51 a barrel by 0220 GMT, after falling nearly 3% last week. U.S. oil was down $1.01 cents, or 1.4%, at $70.80 a barrel, having declined almost 4% last week.