OPEC and allies finalize deal to restore oil production through 2022

Jul. 18, 2021 10:45 PM ETEnergy Select Sector SPDR ETF (XLE), USOBNO, BGR, ERX, OIH, GUSH, VDE, XOP, UCO, USO, XLEBy: Carl Surran, SA News Editor23 Comments

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  • OPEC+ agrees to restore all production cuts the group made when the COVID-19 pandemic began, raising output by 400K bbl/day each month through the end of 2022, resolving an internal dispute that had tested the unity of the alliance.
  • The deal will give Saudi Arabia, the United Arab Emirates, Iraq, Kuwait and Russia higher baselines against which their production cuts are measured from May 2022.
  • The gradual response reflects the uncertain global demand outlook, as much of the developing world, where demand growth for oil had been strongest pre-pandemic, is still fighting surging COVID-19 cases.
  • Brent crude -0.4% in early Asian trading after losing 2.6% last week.
  • WTI crude oil fell 3.7% last week to $71.81/bbl in anticipation of a deal, its biggest weekly decline for a front-month contract since late March 26.

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