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Saudi Energy Minister Prince Abdulaziz bin Salman confirmed at a press conference following the OPEC + meeting today, Sunday, work to end cut levels of current oil production to 5.8 million barrels per day by the end of September 2022, “oil market conditions permitting.”
Prince Abdulaziz bin Salman said he had received a letter from Russian Deputy Prime Minister Alexander Novak confirming Russia’s support for the decision of the OPEC + group, which announced at the end of its meeting on Sunday, the extension of oil production agreement until the end of 2022 instead of next April.
The group also approved a production increase of 400,000 barrels per day each month, starting next August.
According to a statement from the OPEC + alliance, the commitment to the production agreement between member states reached 113% during the month of June.
During the meeting, it was decided to increase the production base of OPEC + from 43.8 to 45.5 million barrels per day, from May 2022.
The OPEC + meeting started today, after the failure of previous negotiations which took place in early July.
During today’s meeting, it was agreed to gradually increase production, starting next August, with an increase in baseline production for Saudi Arabia and Russia of 500,000 barrels each, rising from the level of 11 to 11.5 million barrels per day in May 2022.
Oil prices were little changed on Friday and ended the week lower as they were weakened in volatile trading amid expectations of supply growth at a time when an increase in Corona virus infections could lead to impose restrictions on public isolation decrease in demand.
Brent crude futures rose 12 cents, or 0.2%, to $ 73.59 a barrel, while West Texas Intermediate crude rose 16 cents, or 0.2% , to $ 71.81 at settlement.
The third drop
Despite limited gains, Brent fell nearly 3% last week, the third consecutive decline for the first time since April 2020. West Texas Intermediate crude fell about 4% in one week, the largest drop weekly in percentage since March.
Retail sales in the United States unexpectedly increased in June, as demand for goods remained strong even as spending returned to services, raising expectations of accelerating economic growth in the second quarter.
With oil prices mostly rising in recent months, the number of oil rigs operating in the United States has continued to slowly increase, adding two rigs this week and bringing the number of rigs to 380, the highest since April 2020, according to energy services. Baker Hughes Company.
U.S. crude production has grown by 300,000 barrels per day over the past two weeks, reaching 11.4 million barrels per day in the week ending July 9, the highest level since May 2020, according to federal data.
OPEC +, which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, had not reached an agreement before.
OPEC on Thursday said it expects global oil demand to rise next year to near pre-pandemic levels of around 100 million barrels per day, driven by growth in the asks the United States, China and India.
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