Coalition to implement plans to boost oil supply by two million barrels a day over the next three months
The Organisation of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) have agreed to move ahead with plans to moderately revive oil production from May 2021.
The decision has been taken in the wake of the recovery of global demand from the Covid-19 pandemic. However, it ignores a record spike in cases in India in recent days.
It has been agreed that the coalition should proceed with its roadmap for boosting oil supply over the next three months by two million barrels a day.
As per the estimates of OPEC+, the global oil consumption will revive by six million barrels a day this year although the recovery continues to be at risk with a surge in coronavirus cases in India and Brazil.
OPEC secretary-general Mohammad Barkindo tweeted: “We can take comfort in knowing that our leadership has helped turn the tide.
“But at the same time, the persistence of Covid-19 reminds us that this is no time to stray from the cautious and steadfast approach we have taken over the past year.”
OPEC+ had reduced output to help the global oil industry bounce back from the unprecedented rout in oil prices in 2020. The decision was driven by the drastic reduction in fuel demand due to the spread of Covid-19 across several countries.
The OPEC+ producers are now restarting the supplies in line with the resumption of economic activity. The members will start with an increase of nearly 600,000 barrels per day in May.
Presently, the alliance members are idling approximately eight million barrels a day, which equates to nearly 8% of global supplies, Bloomberg reported.