New Delhi: It is likely that fuel prices witness decline after the OPEC+ grouping agreed to add more barrels to the market. As per the report in Times of India, the grouping, which included Russia have decided to raise production by 400,000 barrels per day (bpd) from August till December to restore 2 million bpd of production, or about 44 per cent of India’s daily requirement.
The grouping also agreed on a higher production quota for United Arab Emirates, Iraq and Kuwait – all major suppliers for India. The energy minister of the United Arab Emirates on Sunday indicated that OPEC and allied countries have reached a “full agreement" followed by the earlier disagreements that kept the global oil prices high.
Global oil prices fell after OPEC+ agreed to boost production into 2022, resolving an internal dispute that had shaken the alliance. Earlier this month, talks over productions didn’t go through due to the United Arab Emirates aiming to increase its own production levels.
That caused tension between UAE and Saudi Arabia amid other disagreements between the two neighboring Gulf Arab nations.
Global benchmark Brent shed more than 1 per cent, while West Texas Intermediate also took a slide. The Opec+ will add 400,000 barrels a day each month from August until all its halted output has been revived. The deal also gives Saudi Arabia, Iraq, Kuwait and Russia higher baselines against which their cuts are measured from May 2022.
The alliance will meet every month and take a stock of the market in December. It could adjust the schedule if required, according to Saudi Energy Minister Prince Abdulaziz bin Salman. The next gathering will be Sept. 1.