Oil-producing countries have agreed to raise supply in order to lower prices and relieve strain on the global economy.
After prices rose to two-and-a-half-year highs during the epidemic, the Opec cartel and partners like Russia will increase supplies beginning in August.
The move is expected to have an influence on gasoline costs, which have already skyrocketed.
Brent crude oil has risen 43 percent this year to over $74 per barrel.
Opec and its partners decreased output by a record 10 million barrels per day (BPD) last year, owing to a pandemic-induced drop in demand and plummeting prices.
However, as economies have reopened this year, the price of oil has risen, leading to increasing inflation in certain nations and threatening to stall the global recovery.
Oil producers have been attempting to soften the cutbacks, but a disagreement between Saudi Arabia and the United Arab Emirates threatened to derail the plans earlier this month.
After rejecting Riyadh’s and Moscow’s desire to produce more oil, Abu Dhabi opposed a plan to prolong output restrictions until 2022.
The unusually public feud between the close friends sparked concerns about the “Opec +” cartel’s stability, which controls more than half of the world’s oil supply.
To help stabilize the market, Opec and its partners have agreed to increase production by another two million barrels per day from August to December 2021.
From May 2022, several members, including the UAE, Saudi Arabia, Russia, Kuwait, and Iraq, will have higher output quotas.
The cartel announced that oil output limits implemented last year would be phased down by September 2022.
The members were “productive,” according to Russian Deputy Prime Minister Alexander Novak, who told public television channel Rossia 24 that they found “agreement.”
“The pandemic is not yet gone, but we are witnessing that, owing to worldwide vaccination, demand for our products, as well as the use of cars and planes, is recovering,” he said.
“It is therefore critical that we fulfill our commitments and allow the global economy to revive.”