The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing nations on Tuesday agreed to continue their previous output adjustment decision given the continuing recovery in the global economy.
The decision came at the meeting of the 16th OPEC and non-OPEC Ministerial Meeting of the group, also known as OPEC+, held one day ahead of schedule.
Highlighting unprecedented levels of monetary and fiscal supports, the ministers of the major oil producing countries said they expect a faster global economic and oil demand recovery in the second half of 2021.
The group pointed to the rising coronavirus cases in a number of countries, despite the ongoing vaccination campaigns, and warned that the resurgence could still hamper the economic and oil demand recovery.
The ministers confirmed the implementation of the previously agreed production levels and scheduled to meet for the 30th Joint Ministerial Monitoring Committee (JMMC) and the 17th OPEC and non-OPEC Ministerial Meetings to take place on June 1.
In their previous meeting on April 1, the OPEC+ group had approved an incremental production increase of 350,000 barrels per day (bpd) for May and June and around 400,000 bpd in July.
Saudi Arabia's additional output cut of 1 million bpd will also be gradually phased out with a production increase of 250,000 bpd in May, 350,000 bpd in June and 400,000 bpd in July.
The group's collective production will reach 5.8 billion bpd in July.
By Sibel Morrow