What Happened: OPEC ministers agreed on June 22 to increase oil production to about one million barrels per day (BPD) to be spread across all OPEC members, with the aim of 100 percent compliance to the 2016 production cut agreement, The Wall Street Journal reported. Actual production may likely fall short, potentially as low as 600,000 bpd.
Why It Matters: Oil prices have rebounded, topping $80 per barrel for the first time in 2014, signaling the need to return oil production to higher levels to avoid global consequences.
Background: In November 2016, major oil producers from around the world agreed to cut oil production to restore balance to the international oil market and correct the disparity between supply and demand.
- Global: Oil Price Have Rebounded, What Happens Next? (May 17, 2018)
- OPEC: Oil Production Deal Still Has Gas in the Tank, for Now (November 30, 2017)
- To Stabilize the Oil Market, Opec Refines Its Strategy (May 26, 2017)