OPEC and Allies Agree to Increase Oil Production

Oil cartel OPEC and allies such as Russia have agreed on a further increase in oil production. That’s what sources at OPEC+, as the alliance between the cartel and its allies is called, told Reuters and Bloomberg news agencies.

As the leader of OPEC, Saudi Arabia is said to have a preliminary agreement with Russia to increase oil production by about 2 million barrels per day from August to December. However, negotiations on the details are still ongoing, officials said.

Oil demand is picking up strongly due to the global recovery from the corona crisis, and oil prices are at their highest level in almost three years, leaving room for a production increase. OPEC+ is already gradually ramping up production through July, having previously slashed it sharply during the pandemic to prop up oil prices.

Russia and Kazakhstan would insist on an increase in production. Still, Saudi Arabia and the Gulf States would be more cautious due to uncertainty about the further course of the corona crisis. In addition, new outbreaks of the coronavirus and lockdowns could put pressure on oil demand again.