OPEC Oil Producers Reach Agreement To Boost Oil Supply As Prices Spike To Nearly 3-Year High

opec oil producers agreement prices
Gulf
  • Date: 18-Jul-2021
  • Source: Forbes
  • Sector: Oil & Gas
  • Country: Gulf
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OPEC Oil Producers Reach Agreement To Boost Oil Supply As Prices Spike To Nearly 3-Year High

Share to Linkedin In hopes of quelling rising oil demand, the group of international oil producers known as the Organization of the Petroleum Exporting Countries agreed on Sunday to boost oil production beginning next month, ending a weeks-long standoff that helped push oil prices to a nearly three-year high. An oil pumping jack, also known as a "nodding donkey", in an oilfield near Dyurtyuli, in the ... [+] Republic of Bashkortostan, Russia. Following two weeks of fraught discussions, the oil cartel and its allies agreed to increase oil production by 400, 000 barrels per day starting in August on a monthly basis until they are once again operating at pre-pandemic capacity. After cutting production by about 10 million barrels per day last year, the oil producers are still supplying about 5. 8 million fewer barrels per day than before the pandemic, meaning the Sunday agreement would put production back at pre-pandemic levels by September 2022; the group will reassess the decision in December. In a statement, OPEC attributed the increase to the "ongoing strengthening of market fundamentals," pointing to oil demand "showing clear signs of improvement" and falling oil inventories as the economy picks up steam around the world in