The Strategist

OPEC+ agrees to stick to its plan to increase oil production

09/02/2021 - 08:08

The OPEC+ countries have agreed to maintain the current plan to increase oil production. The price of oil is falling amid this.

At a meeting on Wednesday, the countries of OPEC + agreed to maintain the previously approved plan to increase oil production. It is reported by Reuters with reference to the statement of the organization. 

Oil production will be increased by 400,000 barrels per day (bpd) in October. By the same amount it will increase in September this year. The next meeting of OPEC + is scheduled for October 4, the agency writes.

November futures on Brent went down by 0.3% and cost $71.41. During Wednesday's trading their price was down to $70.42 - 1.7% cheaper than at the close of trading on Tuesday.   

Earlier, experts of the organization uniting the largest oil-exporting countries adjusted its forecast on the growth of oil demand in 2022. Now they expect demand to grow by 4.2 million bpd - up from 3.28 million bpd previously. This forecast may be the basis for a further increase in the rate of oil production, notes Reuters.

By the end of 2021, according to analysts OPEC +, oil demand will increase by 5.95 million bpd. In the first half of this year, it has already grown by 3 million bpd, the agency notes. 

However, Kuwaiti oil minister told Reuters a few days before the meeting that OPEC+ countries should be careful because "markets are slowing down" and the fourth wave of the coronavirus has begun in some countries.