Home Energy Oil prices drop as OPEC+ prepares to boost production

Oil prices drop as OPEC+ prepares to boost production

The Oil & Gas (+6.5%) index topped the gainers' chart

By Azuka Christopher in London

TUE 22 JUNE, 2021-theGBJournal- Oil prices Tuesday were slightly down on news that OPEC+ might start increasing production. Reports that Russia will be proposing an increase in output in next week’s OPEC meeting also weighed in on prices.

Benchmark Brent crude closed 0-2% down at $74.72 after earlier trading at $75 a barrel while US Crude was down 0.4% at $72.81.

OPEC has steadily increased production since the beginning of the year as global economy recover from the deadly coronavirus pandemic, gradually increasing supply by 2.1 million between May and July.

International Energy Agency (IEA) in a recent report projects global oil demand is set to return to pre-pandemic levels by the end of 2022, rising 5.4 mb/d in 2021 and a further 3.1 mb/d next year, urging OPEC and its allies to “open the taps” to boost oil production and keep the world well supplied.

The agency is confident that global oil demand will continue to recover and, ‘’in the absence of further policy changes, by end-2022 reach 100.6 mb/d.

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