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OPEC+ meets to agree oil supply boost as prices rise

OPEC+ ministers will meet on Sunday in another attempt to agree on a rapid increase in oil supplies to address soaring oil prices as the global economy recovers from the coronavirus pandemic.

Group, including bao OPEC countries and allies like Russia, earlier this month failed to resolve the disagreement over new output policy between Saudi Arabia and the United Arab Emirates (UAE).

OPEC+ last year agreed to a record production cut of nearly 10 million bpd (bpd) in response to the demand slump caused by the pandemic and gradually eased it to around 5.8 million bpd. .

The group planned to cut another 2 million bpd from August to December 2021 as oil prices climbed to a 2-year high.

An OPEC+ source told Reuters On Sunday, OPEC+ producers reached a preliminary agreement on a gradual increase in oil production until December 2021 and an extension of the overall agreement until the end of 2022, but some details remain unclear. be agreed.

While both Riyadh and the UAE are in favor of an immediate output increase, the UAE has opposed Saudi Arabia’s idea of ​​extending the overall supply management pact to December 2022 from the current plan. ends in April 2022.

The UAE argues that it wants higher output quotas if the pact is extended.

According to three OPEC+ sources, higher output quotas for the UAE and potentially for other members such as Iraq and Kuwait will be on the agenda on Sunday.

Producers need to decide when higher output quotas, known as baselines, will be established. Sources have told Reuters that the UAE could see their baseline raised to 3.65 million bpd from April 2022 from the current 3.168 million.

It’s also not clear from what month OPEC+ will put more oil on the market – August could be difficult as Saudi Arabia has set the official selling price for its oil and the release of more barrels could make customers uncomfortable. Current goods are annoying.

Sunday’s meeting will be held virtual and will begin at 1000 GMT, OPEC said.

https://economictimes.indiatimes.com/news/international/business/opec-meets-to-agree-oil-supply-boost-as-prices-rise/articleshow/84519884.cms

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