August 1, 2021

Opec+ reaches deal to raise oil production

Opec and its allies have reached a deal to raise oil production in response to soaring prices, and set a target for the end of 2022 for restoring all the output cut during the early days of the pandemic.

Members of the Opec+ group including the UAE, Saudi Arabia, Russia, Iraq and Kuwait will all be awarded higher production baselines — the level from which output deals are calculated — as part of the agreement, in a victory for Abu Dhabi that had threatened to scupper a deal early this month.

The result of the long-delayed meeting should mean higher oil production from members in the months ahead, as oil prices have soared to the highest level in three years, threatening to drag on the economic recovery during the bounceback from the pandemic.

Initially, Opec+ will pump an extra 400,000 barrels a day each month from August, ramping up output by about 2m barrels a…

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