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The OPEC+ alliance, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and other major crude oil producers, has decided to ease output curbs by gradually increase production over the course of the upcoming three months.
According to media reports, the move comes as the United States has called upon major producers to help reduce oil and fuel prices following their recent surges.
OPEC+ producers will raise production by 350,000 barrels per day (b/d) in May, following by an additional increase in June, and a 440,000-b/d increase in July.
During the same three-month period, Saudi Arabia will ease its voluntary one million b/d output cut.
Raising oil production is supported by expectations for global economic recovery and taming the Coronavirus pandemic with the rollout of vaccines.
Although OPEC recently reduced its expectations for the global demand for oil in 2021, the organization forecasts a recovery in demand during the second half (H2) of the year.
It is worth noting that easing output cuts comes after crude prices restored their pre-pandemic levels, with Brent rising by about 70% over the past five months.
