DUBAI • Opec+ ministers agreed yesterday to boost oil supply from next month to cool prices, which have climbed to 21/2-year highs as the global economy recovers from the Covid-19 pandemic.

The group, which includes Organisation of Petroleum Exporting Countries (Opec) members and allies like Russia, crucially agreed to new production allocations from May next year to overcome differences between Saudi Arabia and the United Arab Emirates (UAE) that threatened the plan.

Opec+ last year cut production by a record 10 million barrels per day (bpd) amid a pandemic-induced slump in demand and collapsing prices.

It has gradually reinstated some supply to leave it with a reduction of about 5.8 million bpd.

From next month until December this year, the group will increase supply by a further two million bpd, Opec said in a statement.

The group had agreed to extend its overall pact until the end of next year, from an earlier planned date of April next year, to leave more room for manoeuvre in case global recovery stalls due to new virus variants.

To overcome a disagreement between Riyadh and the UAE, Opec+ agreed on new output quotas for several members from May next year, including the UAE, Saudi Arabia, Russia, Kuwait and Iraq.

REUTERS