OPEC+ Group is preparing to pump more oil in short term

When global demand for oil decreased last spring, the OPEC + coalition which includes 23 countries led by Saudi Arabia and Russia, managed to control the market and prevent prices from continuing to collapse, through a record reduction in oil supplies of about 10 million barrels daily, which is approximately 10% of the global supply of oil.




The strict supply cuts in the OPEC + range have greatly increased international crude prices, pushing Brent crude to $ 45 a barrel. As a result, sales of oil-exporting countries that depend on their spending, programs and development plans on oil revenues have improved, as have sales of energy companies such as Exxon Mobil and British Petroleum.



The OPEC + organization have succeeded in absorbing excess supplies from the market. Now demand has exceeded supply in July 2020 by about 2 million barrels per day. Therefore, the coalition is expected to pump more oil in the short term.



According to data from the International Energy Agency, the markets have begun to gradually recover. However, there are still fears of the emergence of a second wave of the Corona virus, whose first wave resulted in tens of thousands of victims, and due to which many activities have stopped in many countries. In the United States, for example, the number of Corona virus victims reached about 160,000, which is a record number, and the US economy is witnessing its largest decline in decades.