The Day at a Glance | July 19 2021

The Top

*OPEC+ reaches an agreement; it will increase production in 400 thousand barrels a day every month starting in August and until the end of 2022.

*The Timely Indicator of Economic Activity forecasts a 14.7% annual rate of growth for Mexico´s economy during June.

*The Ministry of Finance and Public Credit will be more involved in the energy sector´s accounts and strengthen development banking under Ramirez de la O.´s leadership.

*New COVID19 cases accelerated in Southeast Asia; infections increased 41% in the last week.

Economic environment

Dispute between Saudi Arabia and the UAE was resolved in the OPEC+. Member countries of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) reached an agreement regarding production increases after weeks of negotiations. The agreement will allow the organization to gradually increase crude oil production in order to meet growing demand: It will do so at a rate of 400 thousand additional daily barrels each month starting in August and until the end of 2022. With this, the organization seeks to completely eliminate the cuts in production that were implemented because of the pandemic. Saudi Arabia came to an agreement with the United Arab Emirates and other countries to recalculate production quotas, which will now allow them to increase production starting in May 2022. Nevertheless, OPEC+ will continue to have its monthly meeting to assess market conditions and rectify decisions, if necessary. The agreement removes uncertainty regarding the oil market´s production outlook.