OPEC is likely to boost oil production in June. This could make it cheaper

OPEC is likely to boost oil production in June. This could make it cheaper

The upcoming meeting of representatives of OPEC countries and other OPEC+ countries is likely to bring an agreement to increase oil production. The amount of oil supplied to the market by Russia will fall by as much as 17 percent this year.

The OPEC+ group of countries, made up of OPEC and other oil-exporting countries, is likely to confirm its agreement to increase oil production by 432,000 barrels per day in June at its upcoming May meeting. Citing six well-informed sources, Reuters reported.

The extracted volume will grow until September

Production is expected to increase by more than 430,000 barrels per day every month until the end of September. At that time, OPEC+ should resume production of such a volume of oil that production is comparable to the situation before the onset of the coronavirus pandemic. The price of oil could fall slightly from the current more than $107 a barrel.

Russia’s decline in production will need to be replaced

However, this will mean that all OPEC+ countries, with the exception of Russia, will have to increase their production more than they originally anticipated. Precisely to compensate for the Russian outage. The Russian Federation is likely to produce 17 percent less oil this year than last year. The decline in Russian oil production is likely to be the largest since 1990, when the country’s oil industry was going through a serious crisis.

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