OPEC+ Agrees to Boost Oil Output by 100,000 Barrels Per Day

OPEC+ Agrees to Boost Oil Output by 100,000 Barrels Per Day

OPEC+ is set to raise its oil output goal by 100,000 barrels starting September.

OPEC and its allies had been increasing production by about 430,000-650,000 bpd a month.

They had, however, struggled to meet full targets as most members have exhausted their output potential following years of under-investment in new capacity.

The 31st OPEC and non-OPEC Ministerial Meeting was held via videoconference on August 3.

The meeting noted that chronic underinvestment in the oil sector has reduced excess capacities along the value chain (upstream/midstream/downstream).

The meeting highlighted with particular concern that insufficient investment into the upstream sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-participating non-OPEC oil-producing countries, some OPEC Member Countries and participating non-OPEC oil-producing countries.

It noted that preliminary data for OECD commercial oil stocks level stood at 2,712 mb in June 2022, which was 163 mb lower than the same time last year, and 236 mb below the 2015-2019 average, and that emergency oil stocks have reached their lowest levels in more than 30 years.

The meeting also noted that Declaration of Cooperation conformity has averaged 130% since May 2020, supported by voluntary contributions of some participating countries.

The conferees reiterated the critical importance