OPEC-Plus has agreed to increase oil production gradually in the coming months, making a cautious bet on an economic rebound in the summer.
The 24-member OPEC-Plus oil alliance agreed to increase oil production on a gradual basis in the coming months, as it predicts the global economy to rebound in the summer.
The group agreed to add more than two million barrels a day to global oil supplies from May to July.
OPEC-Plus has been under pressure to provide more fuel to aid an accelerating global economy.
They said the agreement is supportive of current oil prices, but should also mitigate a sharp spike upward with rising demand for oil.
The latest decision by OPEC and its allies also comes despite opposition from Saudi Arabia’s energy minister, who warned earlier that crude’s recovery was “far from complete”, with the COVID-19 pandemic still wreaking havoc around the world.
Speaking to reporters and related ministers ahead of the virtual gathering of oil officials, Abdulaziz bin Salman warned that until evidence of the recovery is undeniable, members should maintain a cautious stance.
Discover more from LN247
Subscribe to get the latest posts sent to your email.
