The Organisation of Petroleum Exporting Countries (OPEC) and the non-member OPEC+ (a grouping of OPEC plus allied producers, including Russia, has approved a daily oil output 648, 000 barrels per day for the month of August. This was its position after its virtual meeting, yesterday.
The slight increase in output is an indication that the body is sticking to a plan of moderate increase notwithstanding numerous calls to increase output as a way of suppressing the rising price of the commodity.
But, experts are concerned that given the inability of countries to meet their allotted production quota, such increase may not really count.
For sometime now, many countries like Angola, Nigeria and Libya in particular, have been unable to meet their output targets due to a lack of production capacities. Recall that in June, OPEC+ had announced it would increase its output during the summer, with monthly output for both July and August to surpass June’s by more than 200,000 barrels.