Oil cartel OPEC and its allies have agreed to add more supplies to the market to ease the upward pressure on oil prices as the global economy is slowly reviving from the impacts of COVID-19.
In today's virtual OPEC+ meet in Vienna, it was decided that output will be increased by 400,000 barrels a day each month, after the UAE and Saudi Arabia reached a compromise regarding production allocations.
Production will be boosted from August until December 2021 by a further 2 million barrels per day, OPEC said in a statement, adding that the deal will also give Saudi Arabia, the UAE, Iraq, Kuwait and Russia higher baselines against which their production cuts are measured from May 2022.
The UAE's baseline was raised to 3.5 million barrels a day from the previous limit of 3.2 million. While Saudi and Russia will see their baselines increase to 11.5 million barrels per day each, Iraq and Kuwait will see their baselines rise by 150,000 barrels per day each.
The UAE's energy minister Suhail al-Mazrouei said the Emirates support the agreement reached by the OPEC+.
“The UAE is committed to this group and will always work with it,” the UAE energy minister Suhail Al-Mazrouei said after the meeting.
"We strongly support the agreement reached," said the minister.
“OPEC+ is here to stay. Consensus building is an art and the group will continue to meet every month to closely monitor the market recovery," said Saudi Energy Minister Prince Abdulaziz bin Salman as saying during a press conference after the meeting.