OPEC+ has agreed to increase overall production by 400,000 barrels per day every month starting in August 2021 until the total 5.8 million barrel per day production cut has been phased out. The group will reconvene in December 2021 to assess market developments.
During the meeting, the group “noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and OECD stocks falling, as the economic recovery continued in most parts of the world with the help of accelerating vaccination programmes.”
The group will continue to hold monthly OPEC and non-OPEC ministerial meetings for the duration of the Declaration of Cooperation to continue to assess market conditions and make decisions on production level adjustments for the following month. The group aims to end production adjustments by the end of September 2022, subject to market conditions.Â
The April 2020 agreement will be extended until 31 December 2022.
Overall conformity to the production cuts was 113% in June 2021, and the group emphasised “the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021.”
The 20th OPEC and non-OPEC Ministerial Meeting will take place on 1 September 2021.
