Dubai. Finally, the efforts of the Government of India to provide relief from expensive petrol and diesel have started showing color. A full agreement was reached between OPEC and allied countries on Sunday under which five OPEC/non-OPEC countries will increase crude oil production from August. Earlier, oil prices were affected by the dispute between these countries. A statement issued on Sunday after the online meeting of the Organization of the Oil Producing and Exporting Countries (OPEC) and its partner producing countries said that the limits of oil production of Iraq, Kuwait, Russia, Saudi Arabia and the UAE will increase. Russia is an ally of OPEC.
There will be an increase of 4 lakh barrels every month
OPEC countries said that from August it will increase its output by 400,000 barrels daily per month and thus the currently applicable 5.8 million barrels/day cut will gradually end by the end of 2022. After the online meeting, United Arab Emirates (UAE) Energy Minister Suhail-al-Mazrouei informed reporters that there was a complete consensus. However, he did not immediately provide details. But Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman did say that there would be adjustments between the group on production limits. Later, in the statement of OPEC, information was given about the agreement to increase the production level of the five countries.
Saudi Arabia and Russia will produce the most
Under the newly set production limits, the UAE will be able to produce 3.5 million barrels per day from May 2022. According to reports, the UAE was earlier seeking a limit of 3.8 million barrels/day production for itself. Similarly, Saudi Arabia’s daily production limit will be increased from 1100 million barrels to 11.5 million barrels. The output limit of the form will remain the same. The increase in the daily production limit for Iraq and Kuwait will be slightly less than this. OPEC’s statement acknowledged that oil prices are rising steadily. It has said that economic activity is improving as vaccination programs intensify in most parts of the world. Earlier this month, talks about production broke down as the UAE wanted to increase its own production levels. This increased tensions between the UAE and Saudi Arabia.
The demand from Corona had decreased
Crude oil prices fell sharply due to reduced demand for jet fuel and vehicle fuel amid the Corona virus epidemic. Demand has improved after the pace of vaccination in the world’s major economies. Benchmark Brent crude oil was trading at $73 per barrel on Friday. Prince Abdulaziz also pointed out that OPEC members Algeria and Nigeria have expressed some concern about the production limits imposed on them.
The new petroleum minister had called
India’s new Petroleum Minister Hardeep Singh Puri, the world’s third-largest consumer of oil, last week conveyed his concerns to OPEC countries over high oil prices. He had said that high oil prices threaten to affect the recovery economy after the devastating pandemic. New Petroleum Minister Hardeep Singh Puri called the major OPEC countries and expressed India’s desire that consumers should get petroleum fuel at affordable rates. Puri had called the energy minister of Saudi Arabia, the top country of the Organization of the Petroleum Exporting Countries (OPEC), after talking to his counterparts in Qatar and the United Arab Emirates (UAE).
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