OPEC+ agrees to increase oil supply from August

OPEC+ agrees to increase oil supply from August

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OPEC+ agrees to increase oil supply from August

The ministers of OPEC+ (Organization of Petroleum Exporting Countries and allies) agreed this Sunday (18.Jul.2021) to increase the supply of oil from August onwards.

The measure is valid until December and should contain the rise in fuel prices as the global economy tries to return to pre-pandemic levels, reported the Reuters.

Last year, prices reached record levels after falling demand from the pandemic prompted the group to cut production by 10 million barrels a day (bpd).

Now the group has agreed to gradually restore part of the supply. Between August and December 2021, the offer will grow by more than 2 million bpd – or 0.4 million bpd per month, as announced by the organization in note.

The ministers also agreed to extend the pact until the end of 2022, with a review scheduled for April next year. For now, the reduction should remain at around 5.8 million bpd per day.

The measure is expected to lower consumer prices in the short term, economists told the Wall Street Journal. Still, the expectation is that pressure on prices will remain as demand increases.

In Brazil, the measure directly affects fuel costs, since oil prices on the international market are considered in the composition of values ​​charged by Petrobras.

Until the closing of this article (July 18 – 12:50 pm), Petrobras had not announced an adjustment forecast.

In report Released on Thursday (July 15), OPEC has estimated that the global appetite for oil will increase from 3.3 million bpd to 99.9 million bpd next year – the level of pre-pandemic demand.

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