OPEC+ agrees on 648,000 bpd hike in July, August

The Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, have agreed to raise output by 648,000 barrels per day (bpd) in July and 648,000 bpd in August.

The decision was made at the 29th OPEC and non-OPEC Ministerial meeting held on Thursday, June 2.

The meeting noted the most recent reopening from lockdowns in major global economic centres and that global refinery intake is expected to increase after seasonal maintenance.

The meeting also noted the importance of stable and balanced markets for both crude oil and refined products, official news agency WAM reported.

It has been agreed to “advance the planned overall production adjustment for the month of September and redistribute equally the 432,000 barrels/day production increase over the months of July and August 2022. Therefore, July production will be adjusted upward by 648,000 barrels/day as per the attached schedule,” OPEC said in a statement following the meeting.

The members agreed to extend the compensation period until the end of December 2022 as requested by some underperforming countries and requested that underperforming countries submit their plans by June 17, 2022.

It has also been agreed to hold the 30th OPEC and non-OPEC Ministerial Meeting on June 30, 2022.