The OPEC+ group decided at its meeting today, Wednesday, to increase oil production next month (September 2022) by 100,000 barrels per day, despite US pressure to increase oil production.
Prior to this, the OPEC+ Joint Ministerial Monitoring Committee recommended a 100,000 bpd production increase for September 2022, after a decision was made in August 2022 to increase production by more than 600,000 bpd.
According to the final statement of the meeting, the shares of Russia and Saudi Arabia in the increase will be 26,000 barrels per day each. The statement also indicates that the next OPEC + meeting will be held on September 5, 2022.
The statement also warns of a decline in investment in the oil sector and says that underinvestment in the sector will affect supplies to the market after 2023.
He pointed out that the stocks of commercial oil in the Organization for Economic Cooperation and Development in June last year were 163 million barrels less than last year and 236 million barrels less than the level of 2015-2019.
The countries of the OPEC+ group meet monthly to discuss the situation on the oil market and production strategy in order to make adjustments to the plan, if necessary.
In May 2020, the OPEC+ group cut production by 9.7 million barrels per day due to a decrease in oil demand caused by the epidemic, and since August 2021, the group’s production has increased by 400,000 barrels per day, and in a in June this year (2022), production increased by 432 thousand barrels per day, and in July and August 2022 – by 648 thousand barrels per day.
Earlier, the United States, in negotiations with the Gulf countries, tried to agree on a significant increase in production against the backdrop of attempts by Western countries to limit oil purchases from Russia.
Source: Prime + RIA Novosti