Russia backs increase in oil output by Opec+ amid a pandemic: An explainer

The Organization of Petroleum Exporting Countries (Opec) and other oil-producing nations led by Russia is expected to back a modest increase in production by 500,000 barrels per day (bpd) in February and, potentially, by a similar amount in the following months, in the Opec + summit scheduled to be held next month. This decision comes at a time when global oil demand is still under pressure from the impact of the coronavirus pandemic.

Until recently, Saudi Arabia, the de-facto leader of Opec, and its Gulf allies, the United Arab Emirates (UAE) and Kuwait, held similar positions on production cutbacks. Saudi Arabia wanted to introduce production cuts of 7.7 million bpd into January-March 2021 amid a resurgent Covid-19 pandemic. However, countries like Russia, Mexico, Iraq, and later the UAE were against a cutback.