OPEC+ start to gradually increase oil production with an eye to new risks

OPEC+ start to gradually increase oil production with an eye to new risks
  • Clock-gray 11:44
  • calendar-gray 01 January 2021

OPEC+ countries are beginning to gradually increase oil production after nine months of tough restrictions, APA reports citing TASS.

The rate of production increase will not exceed 0.5 mln barrels per day (bpd). By setting such a small rate, the oil exporters, which account for 40% of the global oil market, will be able to better control the volume of supply.

In particular, oil producers will manage to halt the launch of new wells if the market situation worsens.

In January 2021, OPEC+ countries will increase oil production by 0.5 mln bpd instead of 1.9 mln bpd as it earlier planned. The allies opted for a smaller increase because oil demand is recovering slower than it was expected in spring. They still plan to bring back almost 2 mlb bpd to the market but now they expect to do this in 3-4 months of 2021.

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