OPEC mulls over output increase as crude demand surges

By Uthman Salami

The Organisation of Petroleum Exporting Countries (OPEC) and its allies are currently weighing an option of further easing oil output cuts from August as oil prices increase.

Yet, OPEC+ have not made any concrete decisions on exactly how much volume of crude will be further supply into the market

The OPEC+, which consist of the members of the organization and its allies are returning 2.1 million barrels per day (bpd) to the market from May through July as part of a plan to gradually unwind last year’s record oil output curbs.

The decision on volume of crude to be eased of the last year’s cut may be taken at the next OPEC+ meeting which is slated for July 1, 2021.

The talks mean that OPEC and Russia are likely to find common ground again on oil production policy.

Moscow has maintained insistence on further raising output to halt spiked prices while other members such as Saudi Arabia, have given no signals on the next step until now.

A while ago, a  report had said that Russian producers see August as a good time to further ease oil output cuts despite the expected return of Iranian barrels as the market is in deficit, an industry.

Crude oil prices downed yesterday, after Brent rose above $75 a barrel for the first time since April 2019 as OPEC+ begins discussions on raising oil production.