FirstFT: Opec and allies reach deal to raise oil production

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Opec and its allies have reached a deal to raise oil production in response to soaring prices, and set a target for the end of 2022 for restoring all the output cut during the early days of the pandemic.

Initially, Opec+ will pump an extra 400,000 barrels a day each month from August, ramping up output by about 2m b/d in total by the end of the year.

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

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

Five more stories in the news

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

3. Pandemic deprives Asia’s garment workers of almost $12bn in wages
Asian garment workers have been deprived of almost $12bn in wages and severance pay as international retailers cancelled orders and demanded price reductions in the wake of the pandemic, according to a labour rights group.

4. China markets the remains of Anbang empire The remains of China’s Anbang have been valued at more than $5.2bn in the latest attempt by state controllers to dissolve the once high-flying group led by jailed tycoon Wu Xiaohui.

5. Tokyo Stock Exchange chief defends progress on corporate governance The head of the Tokyo Stock Exchange has defended Japan’s progress on corporate governance following a high-profile scandal at Toshiba, rejecting accusations a market overhaul due next year was extensively watered down.

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The day ahead

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