OPEC+ has agreed to add more than 2 million barrels a day of global oil supplies from May to July, reports Bloomberg. The output increase is about a quarter of the crude the group is currently withholding from the market.
OPEC+ was at the start of the week widely expected to roll over their existing output curbs, keeping the market tight
Roger Diwan, a vice president at IHS Markit Ltd, say OPEC+’s move is not necessarily bearish since “product demand is expected to rise by about 3 million barrels a day over the same period.”
OPEC+ will now boost output by 350,000 barrels a day in May, add the same volume in June and increase by 450,000 barrels a day in July.
Saudi Arabia will additionally roll back its voluntary extra 1 million barrels-a day cut, adding 250,000 barrels a day in May, 350,000 in June, and 400,000 in July.
With crude above $60 and gasoline retail cost rising, the U.S and India have called OPEC+ to keep prices under control or risk causing inflationary pressures worldwide.x
Oil futures are currently gaining CL! is up 3.01%
