The parties to the agreement retained the agreements reached earlier on increasing oil production at the level of 648,000 barrels per day in August.
Russian Deputy Prime Minister Alexander Novak co-chaired the 30th OPEC and non-OPEC ministerial meeting. The countries in the agreement assessed the ongoing recovery of oil production, as well as the current state and development forecasts for August 2022. Following the meeting, Alexander Novak said that the 24 oil-producing countries came to a unanimous decision to keep in force the previously adopted agreements to increase daily oil production by 648,000 barrels in August.
“We ensure additional supply on the market in order to meet the growing demand during the summer season and balance the market. There is still uncertainty on the global market due to the policies of the EU member countries and the United States. It is also important that China is coming out of the lockdown, and demand is increasing in the Asia-Pacific countries. We believe that this will make it possible for us to get a balanced market,” the Deputy Prime Minister explained.
Despite external conditions, the OPEC+ countries have exceeded 100 percent implementation of the agreement, Alexander Novak continued. Russia also maintains the same rate of oil production.
“We believe that we will ensure recovery in the summer period; the role of Russia in achieving a balance of supply and demand will be a key one,” he stressed. According to the Deputy Prime Minister, Russia supplies significant volumes of oil to Asian markets, where demand continues to recover.
“For us, this is one of the key areas,” the Deputy Prime Minister added.
Commenting on the idea to introduce a price ceiling for products of Russia’s fuel and energy complex, which is being developed by the EU and the US, Alexander Novak warned that this could result in an even larger imbalance on the global market.
“These are ill-considered and economically unjustified measures, and yet another attempt to interfere in market mechanisms, which can result in market imbalances, shortages, rising prices and higher spending by consumers in G7 countries. The EU decisions regarding the embargo on Russian coal have already resulted in rising coal prices and a shortage of coal in Europe,” Alexander Novak recalled.
The next OPEC+ ministerial meeting is scheduled for 3 August 2022.