The oil-producing countries decided to maintain the earlier approved plans to further increase oil production by 400,000 barrels per day in order to balance the oil market and meet demand.
Alexander Novak co-chairs the 26th OPEC and non-OPEC ministerial meeting
Alexander Novak co-chairs the 26th OPEC and non-OPEC ministerial meeting
Alexander Novak co-chairs the 26th OPEC and non-OPEC ministerial meeting
Deputy Prime Minister Alexander Novak co-chaired the 26th OPEC and non-OPEC Ministerial Meeting. During online consultations, the participants reviewed fulfillment of the commitments assumed by each country to adjust oil production, the participants’ plans in the production agreement for April, as well as market forecasts for 2022.
The participating countries unanimously decided to maintain the agreements to continue the increase in production by a total of 400,000 barrels per day in April 2022. In addition, they underscored the need for the producing countries to fully comply with their voluntary pledges. The compensation period for countries that had not previously fully met voluntary quotas was extended through the end of June 2022.
The OPEC+ countries are successfully fulfilling the recommendations to increase production which stood at 129 percent earlier this year. Among them is Russia, which is complying 100-percent and more with the terms of the deal, Alexander Novak noted following the meeting.
“April will be the ninth straight month of gradual increase in production by 400,000 barrels per day meaning that Russia will reach a production level of 10.4 million barrels per day, which is actually 95 percent of the recovery of output compared with the pre-pandemic levels,” the Deputy Prime Minister said.
According to Mr Novak, the global oil market is fairly balanced. “Recovery of year-on-year demand is expected at a level of 6 million barrels a day which is a good number. In addition, inventories are declining. At the same time, we are seeing market uncertainties, in particular, the earlier decline in investment in the oil sector is affecting the pace of production recovery now,” Alexander Novak said.
The next, 27th OPEC+ ministerial meeting is scheduled for March 31, 2022.
