The price of a barrel of oil rose on Thursday after the OPEC + group (composed of the Organization of Petroleum Exporting States and other large producers) announced that it will gradually increase production starting in May, Xinhua and Reuters report.
On the New York Mercantile Exchange (Nymex), the price of a barrel of ‘light sweet crude’ oil delivered in May increased by $2.29, closing at $61.45. Also on the ICE Futures Exchange in London, the price of a barrel of Brent oil in the North Sea with delivery in June increased by $2.12, closing at $64.86. Since the beginning of the year, the price of a barrel of Brent oil has increased by about 20%.
On Thursday, OPEC+ announced an increase in crude oil production in May, by 350,000 barrels per day (bpd), in June, by another 350,000 bpd, and in July, by 400,000 bpd, following an improvement in the market situation, due to the vaccination campaign and incentive measures taken by advanced economies to overcome the effects of the crisis caused by the coronavirus pandemic (COVID-19). Producers will meet regularly to assess the situation on the oil market and decide on the adjustment of production, but the increase will not exceed 500,000 barrels per day (bpd).
Iran’s oil minister, Bijan Zanganeh, has confirmed that OPEC+ will increase total production by 1.1 million bpd by July.
Saudi Arabia’s Energy Minister Abdulaziz Bin Salman said the level of production could still be adjusted at the April 28 meeting, according to Agerpres.