OPEC+ ministers meet on Sunday in a fresh bid to agree to an increase in oil supply as oil prices rise as the global economy recovers from the coronavirus pandemic.
Over the past month, OPEC+, which includes oil-producing countries and allied countries such as Russia, tried to agree on a new production policy, but failed due to differences between Saudi Arabia and the United Arab Emirates, as the UAE demanded to raise its production quota if the limited oil production agreement is extended . Read more [Oil Prices Rise Despite OPEC+ Instability].
OPEC+ agreed last year to reduce its oil production, which is 10 million barrels per day, by a record rate, to 5.8 million barrels per day, after the demand collapsed due to the outbreak of the epidemic, and the organization was planning to increase production by about 2 million barrels per day, starting from August until December of 2021, due to the rise in oil prices to their highest values in nearly two and a half years.
A source from OPEC+ said that the main producers in the organization have reached a preliminary agreement to gradually increase oil production until next December in addition to extending their agreement until the end of 2022, but some details are not yet agreed.
Producers still need to determine when the organization will start setting new higher production quotas, or what is known as baselines, noting that private sources have stated that the UAE’s share will rise from 3.168 million barrels per day to 3.65 million barrels per day starting in April 2022.