InvestorQ : Has OPEC agreed to finally increase supply of crude oil?
vaishnavi mhatre made post

Has OPEC agreed to finally increase supply of crude oil?

Answer
image
vidhya Laxmi answered.
2 weeks ago
Follow

OPEC and other supporting countries like Russia and Kazakhstan have agreed to gradually increase supply by 2 million bpd in a phased manner starting from May. Clearly, there has been considerable pressure put on OPEC by the US. According to the current time table, OPEC will restore 350,000 bpd in May, 350,000 in June and 400,000 bpd in July.

In addition, Saudi Arabia will also reverse the 1 million bpd cut it had done voluntarily. From here on, it could be a kind of Catch-22 for OPEC. Raising production in advance could push prices lower, but then these oil dependent OPEC countries cannot hold down output for too long as their national budgets largely depending on oil revenues.

0 Views