OPEC+ countries agreed on oil production volumes

The OPEC+ Alliance has agreed to keep the deal on track and increase oil output to 432 million barrels per second in June. According to OPEC, the market equilibrium is confirmed by the preservation of basic elements in the oil market and the alliance’s consensus.

Ministers, on the other hand, highlighted the major impact of geopolitical circumstances and the coronavirus epidemic on the oil market. Saudi Arabia and the Russian Federation will be able to expand oil output to over 10.7 million barrels per day in June, according to the meetings.

Despite the monitoring committee’s assertion that the plan will be completed this year, the price of oil continues to rise instantly reacts to the news and accelerates a spike of up to 4% following the OPEC decision.

The Technical Committee also cut its prediction for oil demand growth to 3.7 million barrels per day. According to OPEC’s Secretary General, such decline is linked to a reduction in world economic growth forecasts.

The alliance did not evaluate the market impact of a hypothetical restriction on raw Russian oil exports, which might be included in the EU’s sixth sanctions package.