The oil ministers of the

Organization of the Petroleum Exporting Countries (OPEC)

and its allies, led by

Russia

, agreed this Sunday to increase their joint production in a staggered manner over the next five months, to reach two million barrels per day (mbd ) additional in December, reports Efe.

In a statement, the OPEC secretariat explained that the increase in production will begin next August, with an

additional

400,000 barrels per day rising

each month until December.

At the same time, the ministers of the alliance known as OPEC + agreed to extend until the end of 2022 the base agreement that set an initial cut of 9.7 mbd in April 2020.

After adding several million barrels a day to the market since then and the now agreed 2 mbd that is expected between now and December, the cut will be reduced to about 3.8 mbd by the end of the year.

With the April 2020 cut, producers reacted at the time to the collapse of world oil demand due to the crisis of the coronavirus pandemic, which went from almost 100 mbd to about 90 mbd.

The negotiations, with the aim of avoiding further upward pressure on oil prices, which in turn threatens global economic growth, lasted about two weeks, amid a dispute over the future level of production of each OPEC member .

Regarding the future calculation of production quotas, OPEC and Russia agreed to make a slight revision that will benefit certain members, specifically

Russia, Saudi Arabia, the United Arab Emirates, Iraq and Kuwait.

Russia and Saudi Arabia will be able to adjust their calculation base for an eventual production adjustment by 0.5 million barrels each (up to 11.5 mbd each) from May 2022, while the Emirates will do so by 0 , 33 mbd, up to 3.5 mbd.

In the case of Iraq and Kuwait, this calculation base increases by 0.15 mbd, each, to 4.803 mbd (Iraq) and 2.959 mbd (Kuwait).

According to the OPEC statement, the next meeting of the alliance's ministers is scheduled for September 1.

The level of compliance with the cut agreed last year stood at 113% in June, that is, more than was agreed upon.

After the five monthly increases in production in the remainder of the year, the ministers will evaluate the situation again in December, including the level of compliance with the cuts.

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