OPEC+ energy ministers agreed on Sunday to increase oil production. From August, production would increase by 400,000 barrels per day each month. Until the end of this year.
A group of OPEC+ countries managed to reach a compromise over the past weekend. Starting in August, oil production will increase by 400,000 barrels per day each month. At the end of this year, two million barrels a day more should be used per day than is the case today.
Opec+ aims to cool black gold price growth, which has climbed to 2.5-year highs. The negotiations dragged on for several days when an agreement could not be reached at a planned meeting more than a week ago. Russia and Saudi Arabia, in particular, refused to increase production. Both countries eventually agreed to the compromise proposal.
The OPEC+ group has been reducing oil production over the past year in response to a dramatic drop in its price following the coronavirus pandemic. Due to anti-emptema measures, which mainly affected air transport, the price of oil futures even fell into negative territory for the first time in history. Now futures are also responding with a decline, with Both Brent and WTI crude oil contracts in August being 0.3 to 0.45 percent lower.