TheCable

The Organisation of Petroleum Exporting Countries and its allies known as OPEC+ have maintained its gradual production increase by 400,000 barrels per day.

OPEC+ reaffirmed its position to maintain the gradual output increase at its 20th OPEC and non-OPEC ministerial meeting (ONOMM) on Wednesday.

In June, OPEC+ agreed to continue to boost output in line with the group’s April decision to return 2.1 million barrels per day to the market between May and July.

In July, the group agreed to increase production by 400,000 barrels per day, an adjustment which it said will take effect between August and December 2021.

At its Wednesday’s meeting, OPEC+ noted that “while the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD stocks continue to fall as the recovery accelerates”.

The meeting welcomed the positive performance of participating countries in the Declaration of Cooperation (DoC).

It said overall conformity to the production adjustments was 110 percent in July including Mexico (109% without Mexico), reinforcing the trend of high conformity by participating countries.

OPEC+ reconfirmed “the production adjustment plan and the monthly production adjustment mechanism approved at the 19th ONOMM and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of October 2021”.

The 21st OPEC and non-OPEC ministerial meeting is scheduled to hold on October 4.

Oil prices dropped as Brent crude fell 18 cents to $71.45 a barrel by 1:09 p.m. EDT (1709 GMT) on Wednesday. 

U.S. West Texas Intermediate (WTI) crude also dipped 6 cents to $68.44 a barrel.