OPEC + Group today agreed to continue its July plan to gradually increase oil production, despite calls from customers for faster production growth and concerns about the negative effects of expensive oil on the world economy. The group announced its decision after today’s meeting of the ministers of the member states. Oil prices have risen sharply in response to this decision. Brent North Sea crude returned above $ 80 a barrel, and US light WTI crude exceeded $ 78 a barrel for the first time since November 2014.
The OPEC + group, made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, agreed last April to reduce production by a record 9.7 million barrels per day. It responded to the sharp fall in oil prices due to the covid-19 pandemic. In the second half of last year, however, it began to gradually ease mining restrictions, and this July it agreed to increase daily production by 400,000 barrels per day from August.
The July plan assumes that OPEC + will review its mining strategy every month. Today’s agreement confirms the November increase in production by 400,000 barrels per day. OPEC + will discuss the further development of mining at a meeting on 4 November.
The United States and India, for example, are calling for OPEC + to increase oil production faster. However, one Reuters source said there were concerns about a new wave of coronavirus in the OPEC + group. “No one wants to take any big steps,” he added.
The price of Brent shortly before 5:00 p.m. rose 3.2 percent to $ 81.79 a barrel. The WTI added 2.9 percent to $ 78.11 a barrel.