The Organization of the Petroleum Exporting Countries and its partners have agreed to gradually increase oil production from May to July, Bloomberg reported.
- The plan is to boost output by 350,000 barrels a day in May, the same volume in June, and 440,000 barrels a day in July. This is in response to demand for more crude as the global economy recovers from the COVID-19 pandemic.
- The proposal came from Saudi Arabia, effectively phasing out the kingdom’s voluntary extra 1 million barrel-a-day supply cut.
- Earlier this week, the OPEC+ was expected to roll over existing curbs into May. The group’s videoconferencing was still continuing on Thursday, to iron kinks of the accord.
- Fuel use is growing fast in America, as the vaccination campaign is progressing better than expected. U.S. Energy Secretary Jennifer Granholm called her Saudi counterpart Prince Abdulaziz bin Salman on the eve of the meeting to discuss the importance of affordable energy.