OPEC and its allies reopen the oil floodgates

Posted on Sep 1, 2021, 7:09 PMUpdated Sep 1, 2021, 7:27 PM

Unsurprisingly, OPEC and its allies including Russia (Opec +) have confirmed their strategy to gradually reopen the oil valves during a summit in Vienna on Wednesday. OPEC + will continue to market 400,000 additional barrels every month, until September 2022, in order to return to a level of supply comparable to that which preceded the pandemic. And it will do so in October despite fears over demand, linked to the spread of the Delta variant in Asia.

Wednesday’s summit was also an opportunity to show the unity of the organization and its partners, especially after the psychodrama of July. At the start of the summer, the United Arab Emirates publicly opposed Saudi Arabia and called for an upward revision of its reference quotas to increase production. Thus leading to a blockage of negotiations. Conversely, the day’s interministerial meeting lasted barely half an hour, one of the fastest in the recent history of this alliance.

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