The Organization of Petroleum Exporting Countries (OPEC) and its member countries intend to increase production by 2.1 million barrels per day. The decision by OPEC to raise output comes as demand for oil has grown in nations where the effects of the coronavirus outbreak have faded, resulting in higher oil prices.
For the three months of May to July, OPEC has already indicated that it will produce 2.1 million barrels of oil per day.
In June, OPEC will increase production by 350,000 barrels per day, and in July, it will increase production by 440,000 barrels per day.
Saudi Arabia is rethinking its plans to increase production by one million barrels per day. Saudi Arabia had previously committed to reduce output by 1 million barrels per day owing to a decline in global oil demand caused by COVID.
Oil-producing countries reduced production in 2020 to keep oil prices stable owing to covid. They are steadily expanding their oil production now that the situation has improved.
Oil prices have increased substantially in recent days, reaching a two-year high on Tuesday.
Since the middle of the year, energy demand in the United States, Europe, and Asia has increased.
On Tuesday, US crude oil increased 2% to $67.72 per barrel. Brent crude climbed 2.7 percent to 71.17 dollars per barrel. Brent crude is trading at its highest level in two years. The price of crude oil in the United States has reached a three-year high.
Since the beginning of the year, oil prices have climbed by more than 30%.