Home News OPEC and Russia increase oil production by 50% in July and August

OPEC and Russia increase oil production by 50% in July and August

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This increase is 50% higher than in previous months – 432,000 barrels per day – in a plan to gradually open the taps every 30 days, the oil organization said in a statement after the ministerial meeting held online , informs Agerpres.

The gradual increases – started in July 2021 – to compensate for the reduction in production due to the decrease in demand in 2020, caused by the pandemic, lasted until September, so that, in practice, the measure will be completed in August.

The decision, taken at a virtual meeting of the alliance of 23 countries, came in the context of pressure from consumer states, such as the United States, for OPEC to further increase production, in order to reduce the price of oil, which fluctuated around $ 120 a barrel, the highest level in a decade.

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Russia “pumped” 1.5 million barrels a day in April, below its share of the 23-nation alliance, due to the impact of Western sanctions following the invasion of Ukraine.

The European Union is finalizing a new package of sanctions against Russia, which includes a veto on oil imports from the country coming to sea.

OPEC warned in mid-May that sanctions on Moscow would affect its export capacity and estimated that Russia, the world’s second-largest producer, would supply 7.5 percent less oil this year than it had estimated in Moscow. three months ago.

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Saudi Arabia has so far announced that it has no plans to increase production to offset declining Russian supplies. OPEC and its allies will reassess the market situation at a virtual ministerial meeting on June 30, 2022.

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