Recently, the price of crude oil has been rising in the world market due to the increase in the demand for oil in Europe and America. Therefore, the oil producing countries have agreed to increase the production of fuel oil with the aim of reducing the pressure on the world economy and reducing prices.
At this time of the epidemic, the price of oil has risen to its highest point in two and a half years. In this situation, at the beginning of this month, OPEC and OPEC Plus member countries sat in a meeting to increase the withdrawal. But in the end, the two-day talks failed because Saudi Arabia and the United Arab Emirates had opposite positions. As a result, the meeting had to be canceled. The OPEC countries met again in London on Sunday for a virtual meeting. According to meeting sources, the countries have agreed to extract oil by next December.
According to the meeting, producing and exporting countries will increase oil extraction from next month to increase oil supply and curb the ongoing uprising at the OPEC ministerial meeting.
A record 10 million barrels (bpd) of lifting fell last year as prices fell due to the epidemic. Although gradually it dropped further to five point eight million barrels.
According to a new decision by the OPEC group, OPEC and its allies have agreed to increase the supply by another 2 million barrels per day from August to December 2021 to help stabilize the market. Several countries, including the United Arab Emirates, Saudi Arabia, Russia, Kuwait and Iraq, will increase production further from May 2022.
Bloomberg conducted a survey of OPEC’s crude oil extraction last month. According to the survey, allied countries extracted 26.47 million barrels of fuel per day last month.
Saudi Arabia is OPEC’s largest oil producer. The country is also the world’s top exporter.