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published photo, JOE RAEDLE
The world’s major oil producers have agreed to increase production, with the aim of easing pressures on the global economy, which is suffering under the weight of the Corona epidemic.
The “OPEC Plus” group, which includes 23 countries, failed to reach an agreement earlier this month amid a dispute between Saudi Arabia and the United Arab Emirates.
At Sunday’s meeting, “OPEC Plus” agreed to increase production by 400,000 barrels per day each month, starting in August, to help advance the global economic recovery.
A statement released after the meeting said the group would “assess developments in the market” in December.
It was also agreed to extend the oil production deal until the end of 2022 instead of next April, and to “work to end the cuts completely by September 2022 if market conditions allow”.
Earlier this month, days of negotiations among OPEC Plus members to continue easing production cuts collapsed, exposing a wedge between Saudi Arabia and the United Arab Emirates.
The OPEC Plus group has increased its oil production since last May, after cutting production more than a year ago when the Corona virus pandemic caused a significant drop in global demand for oil.
published photo, Getty Images
The UAE had rejected a deal to increase production, in what observers saw as a rare dispute with Saudi Arabia
The UAE slammed an oil production proposal earlier this month, calling it “unfair”, leading to a deadlock in negotiations to increase production, which observers saw as a rare challenge for Arabia. Arabia.
But the compromise came at Sunday’s meeting, agreeing to adjust production quotas next May for the UAE and many other countries, meaning actual production cuts will be smaller.
Oil prices fell in April 2020 as the Corona virus spread around the world and affected global consumption, transportation and supply chains, and prices were already falling before the pandemic.
And OPEC Plus decided last year to withdraw 9.7 million barrels per day from the market and gradually restore supplies by the end of April 2022.
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