OPEC and Russia Reach Deal to Raise Oil Production

  • Date: 04-Dec-2020
  • Source: The New York Times
  • Sector:Oil & Gas
  • Country:GCC
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OPEC and Russia Reach Deal to Raise Oil Production

The Coronavirus OutbreakliveLatest UpdatesMaps and CasesC.D.C. Shortens Quarantine PeriodsVaccine TrackerFAQOPEC and Russia Reach Deal to Raise Oil ProductionOil producers in the OPEC Plus group reached a compromise on a modest production increase, but the talks revealed strains in the group.Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia.Credit...Ahmed Jadallah/ReutersBy Stanley ReedOPEC and other oil-producing nations headed by Russia, trying to gauge the strength of the global economy as the coronavirus continues to rage but with vaccines on the horizon, reached a compromise on Thursday to modestly increase production in January.But the talks revealed strains in the unwieldy group, known as OPEC Plus, which has tried to manage the oil market since 2016. These tensions could make it more difficult for the producers to stay in line with production targets as the global economy recovers in the coming months.Under the agreement, members of the Organization of the Petroleum Exporting Countries along with Russia and other countries will increase production by 500,000 barrels a day in January and, potentially, by a similar amount in the following two months. The increase, representing less than 1 percent of the global oil market, comes at a time when demand is still under