OPEC and its allies (OPEC+) has reached an agreement that will gradually increase oil supply following the resolution os dispute between Saudi Arabia and the United Arab Emirates.
The oil cartel in a meeting on Sunday resolved to boost output by as much as 400,000 barrels a day each month from August, until all of its halted output has been revived Bloomberg reported.
Saudi Arabia, the UAE, Iraq, Kuwait and Russia higher baselines against which their production cuts are measured from May 2022.
The 19th OPEC and non-OPEC Ministerial Meeting was held on Sunday via videoconference under the Chairmanship of HRH Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy and Co-Chair HE Alexander Novak, Russian Deputy Prime Minister, together with HE Dr. Diamantino Pedro Azevedo, #OPEC President and Angolan Minister of Mineral Resources and Petroleum, and OPEC SG.
The agreement reached at the meeting puts and end to the disagreement between two long-time allies as well as an ease to a possible supply squeeze or price war.
Saudi Energy Minister Prince Abdulaziz bin Salman said “Instead of ‘I am back,’ we will say ‘we are back,” while celebrating the compromise.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.