OPEC and Russia increase production by 648,000 barrels per day, 50% more
OPEC, together with a group of allied producers, including Russia, has decided to increase oil production 50% more than expected to 648,000 barrels per day (bd) per month in July and August. In a statement after the virtual ministerial meeting, the oil organization said that this increase -432.000 barrels- is 50 percent higher than in recent months and that it plans to open the taps gradually every 30 days.
The extraordinary increase is due to the fact that OPEC has pushed the increase from September -432,000 bpd – to July and August, which means a 50% more 216,000 bpd was added in each of those months. These increases, which were made gradually from July 2021 in order to compensate for the production cut due to the decrease in demand in 2020 due to the pandemic, continued until September, so in practice they were withdrawn to August.
The decision, taken at the virtual meeting of the 23-nation alliance, came amid pressure from some consumer states, such as the United States, to further increase pumping to lower OPEC’s crude oil price, which is around $120 a barrel. the highest level in ten years.