You are here
Home > News > OPEC to increase its oil barrels output

OPEC to increase its oil barrels output

OPEC has agreed to go ahead with its planned January oil output rise of 400,000 barrels per day, two OPEC+ sources said on Thursday.

It was feared that in view of the prices falling for several days, OPEC might decide to postpone this decision. Especially since the cartel has repeatedly responded negatively to the calls of the American administration to increase production. Meanwhile, Russia, a member of OPEC Plus, has strongly spoken out in favor of increasing supply.

According to the agreement, from January 2022, OPEC Plus will increase its production by 400,000 tons of barrels per month and therefore, at least for a while, will end the action of limiting production, which it decided on in 2020, during the peak of the COVID-19 pandemic.

It is worth noting that OPEC Plus is ready to increase supply in a situation where it is already known that the omicron coronavirus mutation will weaken the economic rebound, and therefore the demand for oil. Another thing is that abandoning the increase in supplies would lead to more friction between Saudi Arabia and the United States, at a time when they are already very tense.

Last year, OPEC Plus made the deepest cuts in production in history, reaching 10 million barrels a day, or 10 percent of the supply. Since then, supplies have slowly increased and are now 3.8 million barrels lower than before the pandemic.

Larger deliveries to the market are possible as Iraq currently extracts 4.28 million barrels per day, up 100,000 cubic meters per day. more than in October. The Iraqis are determined to extract even more, because they believe that they deserve it after their lost market share due to war and sanctions. Deliveries from Nigeria have also returned, and now amount to 1.53 million barrels per day, which is 90,000 more per day. Among the OPEC countries, deliveries from Angola are a problem, as it is not able to pump enough to reach its limit,

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Top