Economy News _ Baghdad
The 23 oil-exporting countries of the “OPEC +” alliance meet again today, Monday, to find a way out, after Friday’s failure to reach an agreement to determine production quotas, starting next August.
Talks between the OPEC countries and their allies outside the cartel will resume, a day after the UAE rejected a plan being negotiated as unfair, in an escalation of the dispute that could hinder the recovery of the crude market after the Covid-19 pandemic.
The proposed plan provides for an increase in oil production by 400,000 barrels per day every month from August to December, so that the additional amount of oil put on the market by the end of the year will reach two million barrels per day.
This is in line with the general strategy pursued by OPEC Plus since May, which is to gradually increase production after reducing it sharply with the massive decline in demand when the Corona virus began to spread.
To some extent, this strategy has been successful, as oil prices rebounded to about $75 a barrel for the two benchmarks, Brent North Sea and West Texas Intermediate, an increase of 50 percent since the beginning of the year, a level similar to what prices were in October 2018.
Although the countries seemed to agree to this proposal, it was the question of the extension that sparked a controversy.