New Delhi: It is likely that fuel prices have declined after the OPEC+ group agreed to add more barrels to the market. As the Times of India reports, the group, which also includes Russia, has decided to increase production by 400,000 barrels per day (bpd) from August to December to restore 2 million bpd of production, or India’s daily requirement. of about 44 percent.
The group also agreed on higher production quotas for the United Arab Emirates, Iraq and Kuwait – all major suppliers to India. The United Arab Emirates’ energy minister indicated on Sunday that OPEC and allied countries have reached a “full agreement”, after earlier disagreements kept global oil prices high.
Global oil prices fell after OPEC+ agreed to boost production in 2022, which shook the alliance. Earlier this month, negotiations on productions were not held due to the UAE’s goal of increasing its production levels.
This led to tensions between the United Arab Emirates and Saudi Arabia, among other disagreements between the two neighboring Gulf Arab countries.
Global benchmark Brent fell more than 1 per cent, while West Texas Intermediate also declined. OPEC+ will add 400,000 barrels each month from August until all of its stalled production is revived. The deal also gives Saudi Arabia, Iraq, Kuwait and Russia a higher baseline against which their cuts are measured from May 2022.
The alliance will meet every month and take stock of the market in December. It can adjust the schedule if necessary, according to Saudi Energy Minister Prince Abdulaziz bin Salman. The next meeting will be on 1 September.
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