OPEC+ boosts oil output starting from July
Article:
OPEC+ set to boost oil production from next month, with eight key nations increasing output by 411,000 barrels per day.
The decision, made at an online meeting, was based on stable economic forecasts and healthy market fundamentals, according to a statement released by OPEC+ following the meeting. The cartel controls around 40% of global oil production and includes powerhouses like Saudi Arabia and Russia, as well as Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman.
This month's increase follows an earlier decision to raise production by the same amount in May and June. In anticipation of the expanded output, oil prices had already fallen in recent days. Other OPEC member states, such as Nigeria and Venezuela, and non-members, like the USA, Canada, and Norway, are not part of the cartel.
OPEC had earlier revised its forecast for global economic growth but maintained its projections for oil demand. The cartel anticipates a 1.3 million barrel per day increase in oil demand this year and 1.28 million barrels per day in 2023, driven by strong demand in the air travel sector and healthy mobility in road traffic.
This year, OPEC had already agreed to reduce production by 2.2 million barrels per day to drive up prices. Since April, the cartel has begun to gradually unwind these cuts. Despite the more optimistic outlook from OPEC, the International Energy Agency (IEA) currently estimates this year's growth at 726,000 barrels per day.
Sources: ntv.de, chr/dpa
- OPEC
- Saudi Arabia
- Russia
- Commodity Oil
- Oil Price
- The community of OPEC nations, which includes industry powerhouses like Saudi Arabia and Russia, has agreed to boost oil production, with an emphasis on policies that align with market fundamentals and economic growth.
- The finance sector, particularly oil and gas corporations, may have to adapt their employment policies given the anticipated increase in oil demand from OPEC nations, and subsequent changes in oil prices.
