Sunday 18th July 2021
Gradual increase
Insider: Opec + agrees on funding quotas
As the economy gradually recovers from the corona pandemic, the need for oil is also increasing. Despite several attempts, the major oil exporters have not yet been able to agree on a new production policy. Now there seems to be movement in the conversation.
The deadlocked negotiations between the major oil states about raising production quotas have moved again. According to an insider, the OPEC + countries have agreed on key points for gradually increasing production volumes.
As a result, the delivery volumes are to be increased gradually until December, as reported by Opec + circles. At the same time, the contract on the subsidy brake is to be extended until the end of 2022. This actually expires in April of the coming year. Details are still open. Talks about oil production are to be continued.
As the economy gradually recovers from the corona pandemic, the need for oil is also increasing. Actually, the 23 OPEC + countries wanted to gradually expand their oil production from August onwards. So far, the large oil exporters have not been able to agree on a new production policy despite several attempts. A dispute between the oil giant Saudi Arabia and the United Arab Emirates prevented an agreement. The previous production restrictions thus remained in force. The prospect of a supply bottleneck is driving oil prices.
Opec includes Saudi Arabia, Iraq and Iran, the United Arab Emirates, Kuwait and Nigeria, among others. Opec + partner countries include Russia, Kazakhstan and Mexico.
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