OPEC + will gradually increase its production from January
Oil tanks near Jeddah in Saudi Arabia (illustrative image).
AP - Amr Nabil
Text by: RFI Follow
2 min
The 23 countries of the OPEC + alliance, led by Saudi Arabia and Russia, finally reached an agreement on Thursday, December 3, after adjourning their discussions last Monday.
They will slightly increase their production by 500,000 barrels per day from January.
A cautious compromise, well received by the oil markets.
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Oil prices rebounded to 48.83 dollars on Thursday evening, after the OPEC + press release.
The oil markets are relieved of the compromise reached by the alliance extended to 23 oil-exporting countries.
It was not won and the whole week was necessary to bring the positions closer.
Saudi Arabia wanted to extend the effort to reduce production until March, given the risks of the third wave of coronavirus on the world economy and therefore on oil consumption.
But others like Russia, Iraq, Nigeria, the United Arab Emirates were eager to reopen the floodgates of 2 million barrels per day.
Encouraged by the rise in crude oil prices at the end of November, after the announcement of promising tests on
three vaccines against Covid-19
, they also feared to be doubled by American shale oils, which had almost become profitable again.
In the end, a cautious and very gradual increase was decided: 500,000 more barrels per day in January, and perhaps a similar increase in February and March.
OPEC + will decide it month by month.
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