Posted on 07/18/2021 4:04:43 PM PDT by elpadre
OPEC+, the world's leading oil producers, have agreed on Sunday to extend a slight boost in output. The 23-member group, which also includes Russia, is now set to boost output by 400,000 barrels per day each month, starting with August.
It all follows their prior agreement this spring, when they chose to boost oil output bit by bit starting in May, after having slashed it more than a year ago when the pandemic caused demand in crude to plummet. (more at link)
Sunday's decision was made in order to help fuel a global economic recovery, the Vienna-based group said in a statement. The COVID-19 pandemic has eased in many industrialized nations.
OPEC+ announced that Iraq, Kuwait, Russia, Saudi Arabia and the UAE would see their production limits rise. Saudi Energy Minister Abdulaziz bin Salman, who chairs the OPEC group, declined to provide specifics on how this decision was reached.
The deal also extends a deadline on capping output from April 2022 to the end of 2022.
Saudi Arabia praises 'bond' with UAE
The OPEC+ announcement comes after reported tensions between Saudi Arabia and the UAE prompted a deadlock in talks.
The UAE had wanted to increase its own production, causing them to reject the previous proposal by Riyadh as "unjust."
Sunday's announcement signaled that the two oil producers had found a compromise behind closed doors. It is believed that he deal would boost the UAE's production by up to 3.5 million barrels of crude oil a day beginning in May 2022, slightly below the 3.8 million barrels a day it reportedly sought.
(Excerpt) Read more at dw.com ...
Doesn’t seem to have helped gas prices here.
Thanks Joe.
You make me miss Trump even more.
I so enjoyed not even thinking about the OPECers for four years.
Thot opec was forever a memory. All it took was a rigged election...
Prices would probably go down if the agreement didn’t happen. The UAE and others would start cheating. Now the agreement everyone in the world planned on is in effect which will support the price of oil if the recovery continues without significant setbacks.
If the world economy is setback by Covid, oil use will decline and so will prices.
Kamala: Joe, ban more fracking. We can't let gas prices go down! We must control the masses through energy so we can have a green utopia!
In my state about half the price of our fuels is taxes.
OPEC+ is 24 nations, including Russia. They have agreed to increase production slightly and slowly as they watch the recovery. They are well under the level at which they could produce. They want that happy marriage of production that just meets demand and a price that keeps slowly increasing.
This is still good news for current American operators who are in production. Almost all are profitable above $55 a barrel and it looks like $75 could be support and $80 might not be far off if the recovery doesn’t get stalled by virus restrictions. If the recovery stalls, everyone will get the lower prices they’d like.
It’s a rule of thumb that a rise of $10 a barrel for oil equates to about a 25 cent rise in gasoline per gallon. That’s a loose predictor but usually in the ballpark at this price level.
OPEC is like the NFL. They hate their customers.
To OPEC, customers are useful idiots.
Nothing more, nothing less.
True but irrelevant. We’ve known all that for centuries and nothing has changed. It’s just the landscape we get to play on. Biden is the one who worsened our position and is hurting everyone in America with Obama’s energy policy.
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