IndiPosted at: Apr 2 2021 3:49PM OPEC+ to raise oil output for next 3 months
New Delhi, Apr 2 (UNI) The world’s major oil producers have decided to gradually increase their output starting next month, with an additional 350,000 barrels per day.
Another 350,000 will come on the market in June, while July will see an increase of 450,000 barrels per day.
On Thursday, ministers of the OPEC+ alliance met and took the decision under the chairmanship of Prince Abdul Aziz bin Salman, Saudi Arabia’s Minister of Energy, and Alexander Novak, Deputy Prime Minister of the Russian Federation.
"The Meeting approved the adjustment of the production levels for May, June and July 2021, while continuing to adhere to the mechanism agreed upon in the 12th OPEC and non-OPEC Ministerial Meeting (December 2020) to hold monthly OPEC and non-OPEC Ministerial Meetings to assess market conditions and decide on production level adjustments for the following month, with every adjustment being no more than 0.5 mb/d," said a statement of the group.
The decision was made based on the improvements in the market supported by global vaccination programmes and stimulus packages in key economies.
Also, the meeting followed the resumption of traffic in the Suez Canal.
The ministers, the statement said, "recognized the improvements in the market supported by global vaccination programmes and stimulus packages in key economies, but noted that the volatility observed in recent weeks warrants a continued cautious and vigilant approach in monitoring market developments."
Further meetings will be held to assess market conditions and decide on production adjustments, with each adjustment no more than 500,000 barrels per day (bpd).
The OPEC+ agreed in April 2020 to slash oil output by 9.7 million bpd as the COVID-19 pandemic ravaged demand, and decided later to extend the cut but with less amount until the end of last year.
Reports said the OPEC and non-OPEC producers are cutting over 7 million barrels per day in an attempt to prop up prices and reduce oversupply. Saudi Arabia, which has cut an additional 1 million barrels per day, said that it will begin curbing its voluntary output cuts in May.
UNI SRJ