By Rania El Gamal, Olesya Astakhova and Ahmad Ghaddar
MOSCOW / DUBAI / LONDON, Jul 18 (.) – OPEC + ministers agreed on Sunday to increase oil supplies from August to cool prices, which have risen to two-and-a-half-year highs following an economy recovery. world of the coronavirus pandemic.
The group, which includes OPEC countries and allies like Russia, agreed on new production allocations starting in May 2022, after Saudi Arabia and other countries agreed to a request from the United Arab Emirates (UAE) that had threatened the plan.
“We are happy with the deal,” UAE Energy Minister Suhail bin Mohammed al-Mazroui told a news conference. Saudi Energy Minister Prince Abdulaziz bin Salman declined to answer questions about how consensus was reached.
Last year, OPEC + cut production by a record 10 million barrels per day (bpd) as demand collapsed from the pandemic and drove prices down. The group has gradually restored part of the supply to bring the reduction to some 5.8 million bpd.
From August to December 2021, the group will increase supply by another 2 million bpd, or 400,000 bpd per month, OPEC said in a statement.
The group had agreed to extend its global pact until the end of 2022, from the previously planned date of April 2022, to allow more room for maneuver in case the global recovery stalls due to new variants of the virus.
While both Riyadh and the UAE had been in favor of an immediate increase in production, the UAE had opposed the Saudi idea of extending the pact until December 2022 without obtaining a higher production quota.
To overcome the disagreement, OPEC + agreed to new production quotas for various members starting in May 2022, including the UAE, Saudi Arabia, Russia, Kuwait and Iraq.
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The global adjustment will add 1.63 million bpd to supply starting in May next year, according to . calculations.
Prince Abdulaziz said Nigeria and Algeria could also see their baselines revised.
(Report by Olesya Astakhova, Rania El Gamal, ALex Lawler, Ahmad Ghaddar, Vladimir Soldatkin and Dmitry Zhdannikov; Edited in Spanish by Javier López de Lérida)