OPEC+ to approve another increase in oil production
Kyiv • UNN
OPEC+ intends to agree on an increase in oil production targets by 188,000 barrels per day from August. This comes amid a drop in prices due to the resumption of exports through the Strait of Hormuz.
OPEC+ intends to agree on Sunday on another increase in production targets from August, which will lead to an increase in global supply amid falling oil prices due to the gradual restoration of oil exports through the Strait of Hormuz. Reuters reports, citing its own sources, writes UNN.
Details
The group of oil producers has reached a preliminary agreement to increase quotas by 188,000 barrels per day from August, in addition to similar increases in June and July.
Two other sources noted that an increase of exactly this magnitude is the most likely outcome of the online discussion.
Seven key members of OPEC+, which includes OPEC and allied producers including Russia, have increased their production quotas from April to July by nearly 800,000 barrels per day.
According to OPEC, OPEC+ production in May fell to 33.13 million barrels per day from 42.77 million barrels per day in February.
In June, it began to recover thanks to US efforts to help the UAE and other OPEC+ countries increase oil exports, but it still remains below pre-war levels.
Despite ongoing supply disruptions, oil prices have returned to pre-war levels under pressure from reduced imports from China, increased exports from producers outside the Middle East, and record releases from global strategic reserves coordinated by the International Energy Agency.