OPEC and allies decide to increase crude production from May

The OPEC and its allies (OPEC +) announced this Thursday after a videoconference the increase in their production from May on confirming the solid resumption of the vaccination campaigns against Covid-19.

"The meeting approved the adjustment of production levels for May, June and July 2021 (...) without each adjustment being [greater] than 0,5 million barrels per day (mbd)," the Organization's statement said. of Petroleum Exporting Countries and allies.

The meeting concluded after three hours of discussions with "a surprise," said Edward Moya, an analyst at Oanda. 

"It was decided collectively to increase the current production level of the OPEC + countries in May by 350.000 barrels per day," the same amount in June "and by 450.000 in July," the Kazakh Minister of Energy said in a statement.

The decision came despite expectations that the bloc would act prudently.

Addressing reporters after the meeting, Saudi Energy Minister Prince Abdelaziz bin Salman said the decision could still be modified at other meetings.

The oil-producing countries participating in the OPEC + agreement, led by Saudi Arabia and Russia, had started their third ministerial summit of the year on Thursday, facing a “rough sea” although vaccination campaigns raise hopes of a sustainable recovery in energetic demand.

"The world situation is far from being homogeneous and the recovery is far from complete," said the Saudi minister, in the introductory speech posted on the cartel's website.

Although he noted "signs of significant improvement" on the demand side, the minister pointed out that "the sea is still rough", while respecting the merits of the "prudent and moderate" attitude of the cartel.

The club of 23 producers has so far left some seven million barrels underground each day, and adjusts that volume every month. 

In recent days, many market observers have calculated that this policy would continue into May and even June. However, no “surprises” could be excluded with Opep +, anticipated Stephen Innes, analyst at Axi. / AFP.

 

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