OPEC increasing oil output as economy rebounds

The Organization of the Petroleum Exporting Countries (OPEC) is increasing its oil output as economies around the world begin to rebound from the coronavirus pandemic, according to a press release on a Tuesday ministerial meeting.

“The Meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and [Organisation for Economic Co-operation and Development] stocks falling as the economic recovery continued in most parts of the world as vaccination programmes accelerated,” the OPEC release states.

OPEC members plan to begin producing 2.1 million barrels of crude production per day as travel grows in and among countries where coronavirus restrictions are being lifted.

There are still “clouds on the horizon” for the oil industry, but the OPEC made the “right decision” to begin increasing production, Saudi Energy Minister Prince Abdulaziz bin Salman said, according to The Associated Press.

The group had agreed to increase the production of oil back in April, saying 450,000 barrels would be added a day starting in June. 

OPEC has been deliberating how to ramp up oil production as some parts of the world, such as India, are still being heavily burdened by the pandemic.

The price of oil has gone up 30 percent since January, and gas prices in the U.S. over Memorial Day weekend were the highest in years, the AP noted.