Oil better? OPEC+ confirms plan to hike crude output through July

Oil-producing countries made severe cuts to lift prices during the worst days of the coronavirus pandemic in 2020 and must now judge how much additional oil the market can handle.

The Organization of the Petroleum Exporting Countries (OPEC) oil cartel and allied producing countries, a grouping known as OPEC+, have confirmed plans to restore 2.1 million barrels of crude per day of oil output, balancing fears that continuing COVID-19 outbreaks in some countries will sap demand against the rising need for energy in recovering economies around the globe. Energy ministers made the decision during an online meeting Tuesday. Saudi Energy Minister Prince Abdulaziz bin Salman said recent market developments proved that the decision to gradually increase production, originally made in April and reconfirmed Tuesday, was “the right decision”. He said that there were still “clouds on the horizon” regarding the recovery and demand for energy.