OPEC member states to increase crude oil production: Petrol-diesel prices expected to fall

OPEC says crude oil production will increase by 400,000 barrels per month from August

Dubai: OPEC and its allies reached a full agreement on Sunday under which five OPEC / non-OPEC countries will increase crude oil production from August. Earlier, a dispute between the two countries affected oil prices.

A statement issued on Sunday after an online meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its partner producers said oil production limits in Iraq, Kuwait, Russia, Saudi Arabia and the UAE would increase. Russia is an OPEC ally.

OPEC said its production would increase by 400,000 barrels per month from August and that the current reduction of 5.8 million barrels / day would be phased out by the end of 2022. After the online meeting, UAE Energy Minister Suhail-al-Mazroi told reporters that a full agreement had been reached.

However, he did not immediately give details. But Saudi Energy Minister Prince Abdulaziz bin Salman said arrangements would be made between the group to limit production. The OPEC statement later provided information on the five countries' agreement to increase production levels.

Under the new set production limit, the UAE will be able to produce 3.5 million barrels per day from May 2022. According to reports, the UAE was earlier seeking a production limit of 3.8 million barrels per day for itself. In this way, the daily production limit of Saudi Arabia will increase from 11 million barrels to 11 million barrels.

Russia's production limits will remain the same as before. The increase in daily production limits for Iraq and Kuwait will be slightly less than this. OPEC's statement acknowledged that oil prices have continued to rise. It is said that economic activity is improving in most parts of the world as vaccination programs accelerate.

Earlier this month, talks on production broke down as the UAE sought to increase its production levels. This led to tensions between the UAE and Saudi Arabia. Al Mazroui said the UAE is committed to the group and will always work with it. We will do our best to balance the market and help everyone.

"Our relationship is much more than you can imagine," said Prince Abdulaziz bin Salman, Saudi Arabia's petroleum minister. But he refused to explain how the explanation came about. He said that by saying this, the benefits of this alliance due to mystery and shrewdness would be lost. Amid the Corona virus epidemic, lower demand for jet fuel and vehicle fuel has led to a sharp drop in crude oil prices.

Demand has improved following the pace of vaccination in the world’s major economies. The benchmark Brent crude is trading at 73 per barrel on Friday. Prince Abdulaziz also noted that OPEC members Algeria and Nigeria have expressed little concern about the production limits imposed on them.

In 2016, the price of crude oil fell below થી 30 / barrel. The coalition enlisted the help of a large country like Russia to bring it to market. Its allies, such as OPEC and Russia, have agreed on a record cut of 10 million barrels of daily crude oil production in 2020 to keep prices rising. The cut was then eased by gradually increasing production by 4.2 million barrels. Currently 58 lakh barrels are being reduced every day.