An opinion shows the logo of the Organization of Petroleum Exporting countries (OPEC) at the United Nations Conference on Climate Change COP29, in Bakou, Azerbaijan, November 13, 2024.
Maxim Shemetov | Reuters
Eight main producers of OPEC + on Thuesday day agreed to increase the combined production of crude oil by 411,000 barrels per day, accelerating the pace of their expected increases and lowering oil prices.
The ICE Brent contract with the June delivery was negotiated at $ 70.50 per barrel at 1:32 p.m. London time (8:32 a.m.), down 5.94% compared to the end of Wednesday. The Nymex Wti May May contract was $ 67.11 per barrel, 6.41% lower.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman practically met to examine the world market conditions and decided to increase the collective production of 411,000 barrels per day, from May. The group had to implement an increase of just under 140,000 barrels per day next month.
The May hike agreed Thursday is equivalent to “three monthly increases”, said OPEC in a press release, adding that “progressive increases can be interrupted or reversed subject to evolutionary market conditions”.
The eight producers of OPEC + this month began to gradually relax 2.2 million barrels per day of voluntary cuts undertaken independently of the production strategy of the OPEC + 22 members, which has around 3.66 million barrels per day of distinct discounts until the end of 2026.
The meeting on Thursday was the first assisted by Erlan Akkenzhenov, the new Minister of Energy of Kazakhstan, who had trouble producing above his assigned quota.
Without references individual countries, OPEC said in its declaration Thursday that the May Output increase “will offer participating countries the opportunity to accelerate their compensation” through additional production reductions in accordance with overproduction.
Thursday’s decision was made in the context of a wider market tumult launched by radical prices on key business partners unveiled on Wednesday by the administration of the American president Donald Trump, who simultaneously defends the production of US superior oil.
