The Organisation of Petroleum Exporting Countries and its allies known as OPEC+ have decide to adjust upwards their overall production by 0.4million barrel per day (mbd).
The decision was taken at the end of the 19th OPEC and non-OPEC Ministerial Meeting on Sunday.
A statement issued after meeting said the upward adjustment will take effect from August.
“In view of the current oil market fundamentals and the consensus on its outlook, the Participating Countries: Reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings, including on 12 April 2020.
“Extend the decision of the 10th OPEC and non-OPEC Ministerial Meeting (April 2020) until the 31st December 2022.
“Decide to adjust upward their overall production by 0.4 mb/d on a monthly basis starting August 2021 up until phasing out the 5.8 mbd production adjustment, and in December 2021 assess market developments and Participating Countries’ performance,’’ it said .
It added that the meeting would continue to adhere to the mechanism to hold monthly OPEC and non-OPEC Ministerial Meetings for the entire duration of the Declaration of Cooperation.
This, it said would help to assess market conditions and decide on production level adjustments for the following month adding that it target to end the production adjustment by the end of September 2022 subject to market conditions.
It further said it adjusted effective 1st May 2022, the baseline for the calculations of the production adjustments according to the table.
It Reiterated the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021.
“Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting,’’ it said
It noted that the 20th OPEC and non-OPEC Ministerial Meeting will hold on Sept. 1.