“OPEC Plus” proves the increase in oil production and maintains optimistic expectations for 2021
The OPEC member countries and their allies decided, through the “OPEC Plus” agreement, today, to keep the pace of raising their oil production until July, without giving indications about the coming months, nor discussing the return of Iranian oil to the market.
And the cartel announced in a statement published at the conclusion of a ministerial meeting that lasted only half an hour that the organization “confirmed the decision taken” during the previous summit regarding “adjusting production for the month of July due to the foundations of the registered market.”
From the beginning of May, the organization began implementing production increases with the recovery of oil prices and the improvement of the health situation in developed economies.
On Monday, OPEC Secretary-General Muhammad Barkindo announced that the alliance's policy continues to be "a reliable and important tool for the stability of the oil market."
Among OPEC allies, Russia has been seeking a faster increase in production, but Saudi Arabia prefers a more cautious approach, noting the high number of corona infections in parts of Asia.
This comes as the markets were affected by a third wave of the epidemic that swept India, the third largest oil consumer after the United States and China.
Several other Asian countries were also forced to adopt restrictions to stop the spread of the epidemic, which curbed demand somewhat.
OPEC remains optimistic about its outlook for 2021, expecting demand to reach 96.5 million barrels per day, an increase of 6 million barrels compared to 2020 levels.
AFP - London