OPEC countries agreed on the timing of increasing oil production in the framework of the meeting of the Ministerial Monitoring Committee of the Alliance. A month ago, the terms of the agreement decided not to change until the end of September 2021. This was told by the Minister of Energy of Russia Alexander Novak in an interview with TV channel “Russia-24”.
“This is what kind of OPEC + will increase production for 350 thousand barrels per day, in June – on the same figure and in July – by 440 thousand barrels per day,” Novak explained. According to him, it will allow the levels of oil production planned in 2021, taking into account the growth of demand and gradual market recovery. “
At the same time, the minister noted that the increase in the number of infections of Coronavirus in a number of countries causes concerns about the market regarding further growth in demand. For this reason, OPEC + countries decided not to change the numbers planned earlier. Novak noticed that the execution of OPEC + in March was 113 percent, which can be considered the highest indicator for all the time of the agreement.
The minister also called the situation on the market positive and expressed the hope that the price of oil will keep at 62-66 dollars per barrel until the end of the year.
For the first time, the OPEC + transaction, in which members of OPEC participate, as well as third-party partners, including Russia, was concluded at the end of 2017. In the future, it was repeatedly extended, and the conditions and volumes of reduction of production were revised. Last year, the main participants could not agree on the next extension, as a result of which the agreement broke out, and the world oil prices had sharply decreased. After a month later, the parties were able to come to new agreements.