OPEC+ said its 23 members had agreed between August and December to supply the market with an additional 2 million barrels of oil per day.
On July 18, the Organization of the Petroleum Exporting Countries (OPEC) and its partners, also known as OPEC+, agreed to slightly increase crude oil production from August to boost the global economic recovery. when the pandemic subsides.
In a statement, OPEC+ said 23 members of the group had agreed from August to December to supply the market with an additional 2 million bpd, which means an increase in output by 400,000 bpd per month.
The group will “assess market developments” in December. OPEC + also agreed to extend the agreement to ease production cuts until the end of 2022, instead of April 2022 as previously planned.
Last April, when the COVID-19 pandemic broke out, OPEC + agreed to cut production by 9.7 million barrels per day and will gradually restore supply until April 2022. This decision has proved effective, thereby pushing up oil prices by 50% since the beginning of this year.
At the OPEC+ meeting earlier this month, member countries failed to agree on plans to gradually ease production cuts. The deadlock stems from disagreements between Saudi Arabia and the UAE.
Both countries are in favor of an immediate output increase, but the UAE opposes the idea of Saudi Arabia extending the agreement to ease production cuts until the end of 2022 if the UAE does not get a higher output quota.
To break the deadlock, OPEC+ agreed on new output quotas for a number of members from May 2022, including the UAE, Saudi Arabia, Russia, Kuwait and Iraq. Accordingly, the UAE’s base quota will be raised from the current 3,168 million bpd to 3.5 million bpd.
Meanwhile, the base quotas for Saudi Arabia and Russia will increase to 11.5 million bpd from the current 11 million bpd. UAE Energy Minister Suhail bin Mohammed al-Mazroui said the country was “satisfied” with the deal.