OPEC + Countries Continue To Increase Oil Production
The ministers of the OPEC + countries have confirmed their decision to increase oil production. According to OPEC +, the increase in the rate of vaccination in the face of a pandemic of the new coronavirus infection gives hope for an early recovery in oil demand. At the same time, already now its reserves are approaching the average indicator of 2015-2019.
The stocks have decreased whereas the demand has increased, and prices have stabilized. The OPEC + countries raised their forecast for the growth of oil demand in the world. According to their estimates, in 2021 it will be 6 million barrels per day.
The OPEC + countries have started a gradual increase in oil production since May of this year. By July, production should be increased by 1.14 million barrels per day, while the quota for Russia was increased by 114 thousand barrels per day. The OPEC + decision led to an increase in the price of the Brent oil futures for June 2021 by 3.6% on the London ICE exchange.
In the current situation, even despite the next wave of coronavirus with a new strain, the OPEC + alliance members are more likely to increase oil production both to balance the lack of supply and to adjust prices to a comfortable range of about $ 70 per barrel of Brent oil.