Today, Thursday, OPEC + reached an agreement to increase oil production by 500,000 barrels per day, after talks earlier this week failed to produce a decision on how to face weak oil demand in light of a second wave of the Coronavirus pandemic .
According to what Reuters reported, an informed source confirmed that the "OPEC +" group agreed to increase oil production by 500 thousand barrels per day, starting next January, indicating that the participants in the meeting confirmed that the next session will be in February.
For their part, economists expected a "brief decline in oil contracts after the announcement of (OPEC +) agreement to increase production, starting next January."
Reuters reported, earlier in the day, that sources in "OPEC +" said that Russia, Iraq, Nigeria and the UAE had expressed their desire to supply the market with more oil in 2021, stating that a delegate to OPEC said: "Things are heading towards a settlement." ".
It was widely expected that the Organization of the Petroleum Exporting Countries, Russia and its allies, within the framework of "OPEC +", would extend the current production cuts of 7.7 million barrels per day, or the equivalent of 8% of global supplies, until at least March 2021.
But after hopes for a speedy approval of vaccines to prevent the virus resulted in a rise in oil prices at the end of November, several producers began to question the need to maintain this tightening in oil policy, which Saudi Arabia, the largest producer in OPEC, supports.
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