The OPEC+ Ministerial Committee recommended a gradual increase in oil production by the end of the year, paving the way for the organization to reach an agreement. Even if oil prices are at a two-year high, the move will give the organisation a firm grip on supply.

One delegate, who spoke on condition of anonymity, saidThe joint ministerial supervisory committee of OPEC+, including Russia and Saudi Arabia, recommended that the organization increase production by 400000 b / d per month between August and December.。

The committee also recommended that the expiration of the organization's production reduction agreement should be postponed from April to December 2022. The current expiration date was reached at the peak of the first round of COVID-19 last year, which could lead to the return of large potential supplies to the market.

Oil prices rose, with New York crude futures approaching $75 a barrel on expectations that supplies would remain tight even if the group gradually increased production.

"the price response speaks for itself," says UBS."supply growth will be lower than market participants expected, while demand is expected to continue to rise by the end of August," Giovanni Staunovo, a group commodities analyst, said after the release of preliminary details of the OPEC+ deal.