OPEC+ meets to increase production as oil prices escalate

OPEC and its allies meet on October 4 to discuss increasing oil supply to the market.

In 2020, OPEC + agreed to cut production by a record of nearly 10 million barrels per day when oil demand plunged to the bottom because of the Covid-19 pandemic. Photo: AFP

The move by the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia (referred to as OPEC+) comes amid an escalation in oil prices due to prolonged supply disruptions and recovery in demand. strongly from the Covid-19 pandemic.

With the threshold of 80 USD/barrel, gOil prices have reached the highest level in the past 3 years and the situation has become more serious when gas prices also skyrocketed 300% and traded close to 200 USD/barrel due to lack of supply and production output. other fuels at low levels.

Earlier in July, OPEC+ agreed to increase production by 400,000 bpd per month until at least April 2022 to gradually scale back the 5.8 million bpd cuts that had been in place during the period. via.

Four OPEC+ sources told Reuters last week that members of the oil alliance were considering increasing output far beyond the 400,000 bpd increase agreed in July. However, OPEC+ specifically will How much and when to increase production has yet to be disclosed.

Another source from OPEC+ predicts that it is very likely that the alliance will pump another 800,000 bpd in a month. “We cannot rule out any possibility,” said an OPEC+ source.

Global prices of oil, gas, coal, and electricity have all risen, putting pressure on inflation and slowing the recovery of the global economy. Analysts say that the world oil market is in need of a much more abundant supply than the increase of 400,000 barrels per day that OPEC + has been applying.

Last week, a senior aide to US President Joe Biden met with Crown Prince of Saudi Arabia (Saudi Arabia) Mohammed bin Salman in Saudi Arabia to discuss the war in Yemen, and also mentioned to another concern is oil.