Lagos — The Organization of Petroleum Exporting Countries, OPEC and non-OPEC partners have agreed to increase output by 400,000 barrels a day from February.
The body agreed on Tuesday to stick to its planned increase in oil production from February as energy investors weigh the potential impact of soaring omicron COVID-19 cases.
The new agreement will see a release of supply cuts of roughly 10 million barrels per day.
The production cut was put in place in April 2020 to help the energy market after the coronavirus pandemic curb demand for crude.
Increasing market supplies is widely welcomed especially since the U.S had pressured for more outputs.
International benchmark Brent crude futures traded at $79.87 a barrel on Tuesday, OPEC’s basket of thirteenth crude stood at $78b/d, while U.S West Texas Intermediate crude futures stood at $76.89 a barrel following the fresh agreement.
Oil prices climbed more than 50 per cent last year.
OPEC announced on Monday that it had appointed Haitham Al-Ghais of Kuwait as secretary-general from August.
Al-Ghais, a technocrat who has worked in the oil industry for three decades, will replace Mohammad Sanusi Barkindo in August this year to become the group’s top diplomat.