OPEC+, the world's leading oil producers, have agreed to extend a slight boost in output. The 23-member group, which also includes Russia, is now set to boost output by 400,000 barrels per day each month, starting with August. This is reported by DW.
Sunday's decision was made in order to help fuel a global economic recovery, the Vienna-based group said in a statement. The COVID-19 pandemic has eased in many industrialized nations.
OPEC+ announced that Iraq, Kuwait, Russia, Saudi Arabia and the UAE would see their production limits rise. Saudi Energy Minister Abdulaziz bin Salman, who chairs the OPEC group, declined to provide specifics on how this decision was reached.
The deal also extends a deadline on capping output from April 2022 to the end of 2022.
The OPEC+ announcement comes after reported tensions between Saudi Arabia and the UAE prompted a deadlock in talks.
The UAE had wanted to increase its own production, causing them to reject the previous proposal by Riyadh as "unjust."
So the announcement signaled that the two oil producers had found a compromise behind closed doors. It is believed that he deal would boost the UAE's production by up to 3.5 million barrels of crude oil a day beginning in May 2022, slightly below the 3.8 million barrels a day it reportedly sought.