The group, which includes allies such as OPEC and Russia, has agreed on a new production quota from May 2022 to address differences between Saudi Arabia and the United Arab Emirates (UAE).
OPEC + cut production last year by 10 million barrels per day (bpd), amid epidemic-induced demand and falling prices. It has gradually restored some supplies with a 5.8 million ppd reduction.
From August to December 2021, the group will see a further increase of 2 million ppd or 0.4 million ppd per month, OPEC said in a statement.
The panel agreed to extend their overall contract from the pre-planned date of April 2022 to the end of 2022, leaving more room for maneuvering in the event of global recovery centers due to new virus variants.
Although Riyadh and the United Arab Emirates supported the immediate release stimulus, the United Arab Emirates objected to Saudi Arabia’s idea of extending the agreement to December 2022 without receiving a higher production quota.
To deal with the disagreement, OPEC + has agreed to a new publication quota for several members, including the UAE, Saudi Arabia, Russia, Kuwait and Iraq.
According to Reuters estimates, the overall adjustment will add 1.63 million ppd to deliver from May next year.
The United Arab Emirates will see its base production, from which the cuts are calculated to increase from 3.5 million ppd today to 3.168 million ppd today.
Saudi Arabia and Russia each account for 11.5 million ppm, up from the current 11 million.
(Report by Olesya Astakova, Rania L. Kamal, Alex Lawler, Ahmed Kadar and Dmitry Zhtanikov; Written by Dmitry Zhtanikov; Editing by Elaine Hartkostel)