FirstFT: Opec and allies reach deal to increase oil production

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OPEC and its allies have struck a deal to increase oil production in response to rising prices, and have set a target by the end of 2022 to restore all production cuts during the early days of the pandemic.

Initially, Opec+ will pump an additional 400,000 barrels each month from August, increasing production by a total of approximately 2 million barrels per day by the end of the year.

Those monthly production increases will continue next year, with Opec+ saying it has extended the deal to December 2022 from April 2022. The outcome of the long-delayed meeting should lead to higher oil production from members in the coming months, after a tight supply had pushed oil prices to their highest level in three years.

But the modest pace of production increases is a sign of continued concern about the strength of the global recovery as Covid-19 variants continue to emerge. It also suggests that oil producers are relatively comfortable with the current price of crude oil.

Five more stories in the news

1. Delta variant takes place in developing countries The Delta coronavirus variant that has quickly become dominant in much of the world is taking a grim toll on dozens of developing countries, where vaccination levels are insufficient to prevent a wave of cases from becoming a wave of deaths.

2. Pentagon drones ‘8 to 14 times’ more expensive than banned Chinese craft verboden
Camera drones developed by the Pentagon are more expensive and less capable than the Chinese-made drones they were supposed to replace, according to an internal US government memo seen by the Financial Times.

3. Pandemic Strips Asian Garment Workers Nearly $12 Billion in Wages
According to a labor rights union, Asian garment workers have lost nearly $12 billion in wages and severance payments as international retailers canceled orders and demanded price cuts in the wake of the pandemic.

4. China markets the remnants of the Anbang empire The remains of China’s Anbang have been valued at more than $5.2 billion in the latest effort by state comptrollers to disband the once-high-flying group led by imprisoned tycoon Wu Xiaohui.

5. Tokyo Stock Exchange chief defends corporate governance advances The head of the Tokyo Stock Exchange has defended Japan’s progress on corporate governance after a high-profile scandal at Toshiba, dismissing allegations that a market overhaul due next year was thoroughly watered down.

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