[ad_1]
Find out what clicks on FoxBusiness.com.
OPEC + ministers agreed on Sunday to increase oil supply from August to cool prices which have hit 2.5-year highs as the global economy recovers from the coronavirus pandemic.
The group, which includes OPEC countries and allies like Russia, crucially agreed on new production allocations from May 2022 to overcome differences between Saudi Arabia and the United Arab Emirates (UAE) that threatened the plan.
Last year, OPEC + cut production by a record 10 million barrels per day (bpd) amid the pandemic-induced drop in demand and falling prices. He gradually restored part of the supply to come out with a reduction of around 5.8 million bpd.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
From August to December 2021, the group will increase its supply by an additional 2 million bpd, or 0.4 million bpd per month, OPEC said in a statement.
The group had agreed to extend its global pact until the end of 2022 from an earlier scheduled date of April 2022, to leave more leeway in case the global recovery halted due to new variants. virus.
While Riyadh and the United Arab Emirates favored an immediate increase in production, the United Arab Emirates had opposed the Saudi idea of extending the pact until December 2022 without securing a higher production quota.
To overcome the disagreement, OPEC + agreed to new production quotas for several members from May 2022, including the United Arab Emirates, Saudi Arabia, Russia, Kuwait and Iraq.
THE RISE IN THE PRICES OF GASOLINE COULD STABILIZE “SOON”, SAYS AN EXPERT
The global adjustment will add 1.63 million bpd to the offer from May next year, according to Reuters calculations.
The UAE will see its benchmark production, from which the cuts are calculated, rise to 3.5 million bpd as of May 2022, from 3.168 million today.
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
Saudi Arabia and Russia will see their reference levels rise to 11.5 million barrels per day each from the current 11 million.
(Reporting by Olesya Astakhova, Rania El Gamal, Alex Lawler, Ahmad Ghaddar and Dmitry Zhdannikov; written by Dmitry Zhdannikov; edited by Elaine Hardcastle)
[ad_2]
Source link