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OPEC+ agreed to slightly increase oil production | News from Germany about world events | DW

The OPEC+ oil-producing countries have agreed to increase oil production by 100,000 barrels per day from September, Reuters reports citing a source on Wednesday, August 3.

According to the interlocutors of the agency Bloomberg, OPEC+ countries will share the increase proportionally among themselves. Reuters calls the increase in production a “tiny” increase that will provide “86 seconds of global demand” and an “insult” to US President Joe Biden, who during trips to saudi arabia last month he tried to convince the OPEC leader of the need to increase production. At the same time, the agreement may give “a little respite to consumers suffering from inflationary pressures of high oil prices,” writes Bloomberg.

“We have always said that the preferred price corridor is $60-80 per barrel. Today the price is $100. Therefore, we may have to increase production to avoid overheating,” Kazakh Energy Minister Bolat Akchulakov told reporters ahead of the OPEC+ decision .

OPEC increases production after coronavirus

In June the countries agreed to increase in July and August, a 648,000 barrels per day oil production quota to offset the effect of reduced oil demand during the coronavirus pandemic. Saudi Arabia, the largest oil producer in OPEC, initially did not want to take this step, but in the end, Riyadh agreed to avoid a shortage in the market in a situation where a number of countries refused to buy oil from Russia due to the war in Ukraine, the Financial Times wrote. .

The OPEC+ group includes 13 members of the Organization of the Petroleum Exporting Countries (OPEC), as well as 10 partner countries, including Russia.

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