Russia supports the (OPEC+) decision to increase production in line with the increase in market demand

Russian Deputy Prime Minister Alexander Novak announced that Moscow does not consider the rate of increase in (OPEC +) production by 400,000 barrels per day a negative step for the market, as it is a right decision and in line with the increasing demand. He pointed out that demand and consumption tend to increase, and despite the fact that the Corona virus is still rampant and there are different waves of it, but nevertheless there is a general understanding that the closures are no longer as they were before, and movement is being restored. Therefore, it is necessary to gradually increase production in order to achieve a balance between supply and demand. On 18th July 2021, the (OPEC +) alliance agreed to gradually increase oil production by 400,000 barrels per day, starting from August 2021, until the current production constraints of 5.8 million tons per day are exhausted. The coalition expects to gradually withdraw from current commitments to limit oil production by 5.8 million barrels per day by the end of September 2022, and the agreement will be extended until the end of 2022. During the meeting, it was decided to increase the baseline for the production of (OPEC+) from 43.85 million barrels per day to 45.48 million barrels per day, while increasing the baseline for UAE production to 3.5 million barrels per day. As for Saudi Arabia, the head of the joint alliance (OPEC+) with Russia, the baseline for each of them increased from 11 to 11.5 million barrels per day, and it was decided to increase the baseline for the production of Iraq and Kuwait by 150 thousand barrels per day for each. The implementation of the new production baselines is scheduled to start in May 2022.