The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have decided to increase oil production by half a million barrels per day until the end of next July.
The quantities produced remain less than the expected quantities, which are supposed to be more than that during this time of the current year.
The OPEC Joint Ministerial Monitoring Committee (JMMC) held, on Tuesday evening, an virtual meeting to discuss the quantities of production that OPEC countries will pump in the coming months.
The ministers said in a statement that “under the referred circumstances… the Ministerial Meeting decided on the continued implementation of the production adjustment decision of the 15th OPEC and non-OPEC Ministerial Meeting (in the months of June and July as per the attached table)”.
In early April, OPEC+ ministers decided to increase production by half a million barrels per day during the months of May, June and July.
The decision means reducing the cuts approved for months, from about 7.2 million barrels per day to 6.6 million barrels.
OPEC+ countries decided in April 2020 unprecedented cuts in production by 9.7 million barrels per day, starting from the beginning of the following May.
Since August 2020, OPEC+ has made several cuts in approved cuts, down to the current level (6.6 million barrels).
The ministers also said in the statement that today’s meeting “The Meeting highlighted the continuing recovery in the global economy, supported by unprecedented levels of monetary and fiscal support, while noting that the recovery is expected to pick up speed in the second half of the year”.
The Ministerial Meeting emphasized, however, that “COVID-19 cases are rising in a number of countries, despite the ongoing vaccination campaigns, and that the resurgence could hamper the economic and oil demand recovery”.
The ministers also stressed “the importance of accelerating the market rebalancing efforts without delay. It reminded all Participating Countries to remain vigilant and flexible given the uncertain market conditions”.
The coalition’s ministers decided to hold their next meeting early next June.
OPEC’s concerns increase in light of the increase in infections in India, Japan and Brazil, which may curb production, which the organization has agreed to increase in the coming months.
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