ThinkCivics News
An educated citizenry is a vital requisite
for our survival as a free people.
Join ThinkCivics+
  • Culture & Society
  • Economy
  • Health
  • US News
  • Faith
  • Science & Tech
  • World News
No Result
View All Result
ThinkCivics News
  • Culture & Society
  • Economy
  • Health
  • US News
  • Faith
  • Science & Tech
  • World News
Join ThinkCivics+
No Result
View All Result
ThinkCivics News
Join TC+
Home Economy

OPEC+ Agrees To Boost Oil Output In July As Demand Rises

ThinkCivics Newswire by ThinkCivics Newswire
June 1, 2021
in Economy
Reading Time: 3 mins read
0
0
OPEC+ Agrees To Boost Oil Output In July As Demand Rises

As expected, OPEC+ announced it would hike oil output in July, sticking to its previously leaked plan as Saudi Arabia’s energy minister struck a bullish tone about the global recovery. As Energy Intel’s Amena Bakr summarized:

  • OPEC+ agreed to keep the existing April 2020 deal unchanged
  • Reconfirmed the existing commitment of the 10th OPEC and non-OPEC Ministerial in April 2020 amended in June, September, and December 2020, as well as in January and April 2021 to gradually return 2 mb/d to the market, with the pace being determined according to market conditions.

Saudi Energy Minister Prince Abdulaziz bin Salman recapped the prevailing optimism as the meeting started: “The demand picture has shown clear signs of improvement.” Russia’s Alexander Novak also spoke of the “gradual economic recovery.”

As part of the return to normal, the oil producers will push ahead with an increase of 841,000 barrels per day in July, following hikes in May and June, Bloomberg reported citing delegates.

OPEC and its non-US allies have spent more the past 14 months rescuing prices from historic lows and an unprecedented plunge in negative territory for WTI on April 20, 2020, and are only cautiously returning supply. Now the story is shifting: oil prices above $71 are fueling inflation concerns and if OPEC doesn’t add more oil, there’s a risk the market becomes too tight, undermining the global recovery. Furthermore, as OPEC+ hopes to capitalize on rising prices, it doesn’t want prices to rise too high as to push US shale producers out of hibernation and into overdrive, resulting in another production glut.

For now, the cartel is also embracing caution. Prince Abdulaziz echoed the concerns of his fellow delegates when he said there are still “clouds” on the horizon, first and foremost the question of what happens to millions of daily barrels in Iranian oil supply.

Iran’s potential return to international markets is one factor weighing on ministers’ decision-making. The impact of new variants of Covid-19 is another. And while there’s a wide deficit in the market to fill in the second half of the year, those two considerations could see some producers argue for a pause before further hikes.

“Covid-19 is a persistent and unpredictable foe, and vicious mutations remain a threat,” OPEC Secretary-General Mohammad Barkindo said.

The organization is now scheduled to hold supply unchanged until April 2022, according to the deal signed a year ago to rescue producers from a bitter price war. While the agreement can be renegotiated – and there’ll be pressure to do so as demand continues to recover – it provides a fallback position for the group, with the excess oil inventories built up during the pandemic now back to pre-covid levels.

Tuesday’s meeting didn’t tackle the period after July, delegates told their preferred news outlets.

Fatih Birol, executive director of the International Energy Agency, told Bloomberg that if the alliance doesn’t boost output later this year, prices will face further upward pressure, with $80 oil increasingly likely. Some are even whispering of triple digit prices.

“One thing is clear: in the absence of changing the policies, with the strong growth coming from the U.S., China, Europe, we will see a widening gap” between demand and supply, Birol said.

This article was originally published by Zero Hedge. Read the original article.

ThinkCivics Newswire

ThinkCivics researches, examines, and reports on issues that matter most. We deliver explanative, fearless, and insightful analysis for public consumption.

thinkcivics.com
Tags: Oil outputOPEC+

Related Posts

The Sinister Roots of Build Back Better

The Sinister Roots of Build Back Better

May 26, 2022
Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

May 24, 2022

This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect

May 23, 2022

Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won

May 23, 2022
Load More
Next Post
Mining Companies Flee China as CCP Cracks Down on Cryptocurrency

Mining Companies Flee China as CCP Cracks Down on Cryptocurrency

(Watch) National Black Power Convention Chant: ‘Kill Everything White in Sight’

(Watch) National Black Power Convention Chant: 'Kill Everything White in Sight'

California moves forward with reparations effort to create ‘more equitable’ future

California moves forward with reparations effort to create 'more equitable' future

TODAY'S TOP STORIES

  • Protesters block, attack truck and horse trailer, driver runs them over

    Protesters block, attack truck and horse trailer, driver runs them over

    0 shares
    Share 0 Tweet 0
  • Unvaccinated People Will Be Barred From This, Starting May 31

    0 shares
    Share 0 Tweet 0
  • Here’s a Three-Word Policy That’s Been Effective in Stopping School Shootings

    0 shares
    Share 0 Tweet 0
  • Watch As Nancy Pelosi Has Meltdown During Live Interview To Roe v. Wade Question

    0 shares
    Share 0 Tweet 0
  • Bill Maher Notices Something Odd About These Transgender Kids

    0 shares
    Share 0 Tweet 0

Newly obtained memo shows John Kerry was conducting ‘secret’ meetings with Iran during the Trump administration

by ThinkCivics Newswire
May 26, 2022
0
Newly obtained memo shows John Kerry was conducting ‘secret’ meetings with Iran during the Trump administration
National Security

This article was originally published on Twitchy.com. Read the original article.

Read more

Handwritten Notes From 2017 Show FBI Agents Mislead DOJ On The Trump-Russia Investigation

by The Federalist
May 19, 2022
0
Handwritten Notes From 2017 Show FBI Agents Mislead DOJ On The Trump-Russia Investigation
National Security

Hillary Clinton’s campaign lawyer Michael Sussmann is currently on trial for lying to the FBI about his role in pushing...

Read more

Jankowicz Got The Boot, But Biden’s ‘Ministry Of Truth’ Hired Replacements Are WORST

by ThinkCivics Newswire
May 19, 2022
0
Jankowicz Got The Boot, But Biden’s ‘Ministry Of Truth’ Hired Replacements Are WORST
National Security

The Department of Homeland Security (DHS) hired the co-author of the PATRIOT Act, arguably the harshest crackdown on civil liberties...

Read more

MSNBC Guests Want GOP Labeled ‘Domestic Terror Party,’ Jail Time For Having The Wrong Opinions

by The Political Insider
May 19, 2022
0
MSNBC Guests Want GOP Labeled ‘Domestic Terror Party,’ Jail Time For Having The Wrong Opinions
National Security

We all know that Democrats and the left love to operate on the premise of “never let a good crisis...

Read more
The Sinister Roots of Build Back Better
Economy

The Sinister Roots of Build Back Better

by American Thinker
May 26, 2022
0

President Joe Biden and the puppeteers who control his teleprompter are weakening the country in order to gain more power...

Read more
Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States
Economy

Watch: Davos Elites Warn “Painful Global Transition” Should Not Be Resisted By Nation-States

by Zero Hedge
May 24, 2022
0

As World Economic Forum head Klaus Schwab proclaimed that “the future is built by us” at the opening of the...

Read more
This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect
Economy

This Year’s World Economic Forum in Davos Is as Disturbing as You’d Expect

by RedState
May 23, 2022
0

It’s the time of year again when thousands of the world’s most powerful and wealthy people gather in Davos, Switzerland...

Read more
Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won
Economy

Is Trump A Modern Day Nostradamus? Watch His Prediction Of What Would Happen If Biden Won

by The Political Insider
May 23, 2022
0

President Trump is many things, to friend and foe alike. Is being a modern day Nostradamus among them? At least...

Read more
Facebook Twitter RSS

Brilliantly

SAFE!

thinkcivics.com

Content & Links

Verified by Sur.ly

2022

Recent News

  • Videos Surface Showing Parents Pleading With Cops To Take Down Uvalde Shooter While He Was Inside Classroom For Up To An Hour
  • CNN Admits: Republican Red Wave ‘Building Fast’
  • Report: Police Got Own Kids Out of School While Subduing Other Uvalde Parents

Category

  • Culture & Society
  • Economy
  • Editorials
  • Education
  • Elections
  • Energy
  • Environment
  • Faith
  • Health
  • Immigration
  • Military
  • National Security
  • Politics
  • Science & Tech
  • US News
  • Videos
  • World News

© 2022 ThinkCivics Media. All Rights Reserved.

  • Login
  • Sign Up
No Result
View All Result
  • Home
  • About
  • Store
  • Contact Us
  • Join
  • Contribute

© 2022 ThinkCivics Media. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.