OPEC+ maintains oil production increase under agreement

Despite strong demand and oil prices, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) agreed to maintain the agreed increase in crude oil production by 400,000 bpd until November 2021.

The South Pars oil well at the Iranian port of Assaluyeh. Documentary photo: AFP/VNA

The decision was made by OPEC + ministers after an online meeting on the same day to reduce the increasing oil price. The meeting was conducted as OPEC + is under increasing pressure from the US and India to increase production after the world oil price increased by 50% this year.

Assessing the results of the OPEC + meeting, Russian Deputy Prime Minister Alexander Novak said that the decision to maintain the increase in oil production by 400,000 barrels per day will help stabilize the market.

The oil market situation has changed little since the OPEC+ meeting earlier this month as demand continues to weigh on global crude supplies. Oil prices rose to more than $80 a barrel for the first time in three years last month. The rise in oil prices, on the one hand, benefits producers by increasing export volumes and revenues, on the other hand, causes constraints in the medium term as rising oil prices threaten to stifle a capital economic recovery. fragile after the COVID-19 pandemic.

Previously, during a meeting in early September, OPEC + agreed to gradually increase crude oil production according to the policy being applied. At a meeting two months ago, OPEC+ officials agreed to increase crude oil production by 400,000 bpd at least until April 2022. On August 31, OPEC + experts forecast that the growth of crude oil demand in 2022 would reach 4.2 million b/d, up from the previous forecast of 3.28 million b/d. This is said to cause OPEC + to increase oil production in the future.