OPEC+ deal should end $100 a barrel crude oil predictions: Russell

opec oil crude barrel predictions
Gulf
  • Date: 07/20/2021
  • Source: Zawya
  • Sector: Economy
  • Country: Gulf

OPEC+ deal should end $100 a barrel crude oil predictions: Russell

LAUNCESTON, Australia - The OPEC+ deal to boost crude oil output from August was always the most likely outcome to the producer group's earlier impasse, and it should be enough to end market talk of $100 a barrel oil, at least for now. OPEC+ ministers agreed on Sunday to boost production by 400,000 barrels per day (bpd) from August to December, adding a total of 2 million bpd to global supply by the end of the year. Additionally the group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed to new production allocations from May 2022, resolving the dispute sparked by the United Arab Emirates (UAE), which had wanted the baseline for its output quota raised. The UAE will see its baseline gain by about 332,000 bpd from May, while Saudi Arabia and Russia will enjoy increases of 500,000 bpd each, with Iraq and Kuwait getting jumps of 150,000 bpd each. OPEC+ also plans to end all output restrictions by September 2022, but this will depend on the state of the global oil market around that time. With the impasse resolved, and more crude returning to global supply, the question for the market is