The OPEC+ has agreed to increase their overall production by 0.4 mb/d on a monthly basis starting in August 2021 until phasing out the 5.8 mb/d production adjustment. The OPEC+ aims to fully phase out cuts by around September 2022, subject to market conditions. From May 2022, Saudi Arabia and Russia will see their baseline production, from which cuts are being calculated, rise from 11 mb/d to 11.5 mb/d. Similarly, the United Arab Emirates will see its baseline increase by 330,000 bbl/d (from 3.168 mb/d to 3.5 mb/d) and Iraq and Kuwait by 150,000 bbl/d each. The baseline for Nigeria and Algeria could also be revised.
Earlier in July 2021, the OPEC+ called off talks about global oil supply amid a dispute between Saudi Arabia and the United Arab Emirates. In June 2021, the OPEC+ agreed to stick to the oil production adjustment decision of early April 2021, when the producer group agreed to return 2.1 mb/d of supply to the market over the May-July 2021 period. Saudi Arabia had committed to voluntary outputs cuts of 1 mb/d as of February 2021; these volumes will gradually return on the market over the May-July 2021 period.
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