OPEC+ to Increase Daily Production by 400,000 Barrels Starting Next Month

Oil-producing countries agree to ease production cuts until the end of next year

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Daehyun] It has been reported that the 'OPEC Plus (OPEC+)' has agreed to implement an additional production cut easing policy starting next month. OPEC+ is a consultative group consisting of the Organization of the Petroleum Exporting Countries (OPEC) and major oil-producing countries including Russia.

According to major foreign media on the 18th (local time), OPEC+ agreed to take additional production cut easing measures starting next month. Accordingly, OPEC+ is expected to increase oil production by an additional 400,000 barrels per day from next month and raise the total to 2 million barrels per day by the end of this year. Along with this, the deadline for the production cut easing agreement, originally set until April next year, was extended until the end of next year.

In a statement on the same day, OPEC+ said, "We recognize clear signs that market demand is improving along with fundamentals that remain consistently strong."

This appears to be the result of Saudi Arabia and the United Arab Emirates (UAE), who had conflicting opinions regarding oil production policies, narrowing their differences by adjusting oil production baselines. The UAE will increase its current production of 3.2 million barrels per day to 3.5 million barrels per day. It is also reported that not only the UAE but also Iraq and Kuwait's oil production volumes were raised during the meeting.

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