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OPEC, non-OPEC ministerial meeting resolves to raise crude output

The 19th OPEC and non-OPEC Ministerial Meeting (ONOMM) has agreed to raise crude oil output from August.The meeting held via…

The 19th OPEC and non-OPEC Ministerial Meeting (ONOMM) has agreed to raise crude oil output from August.The meeting held via videoconference and concluded on Sunday, July 18, 2021, resolved to raise output by 400,000 barrels per day (bpd) each month from August to support global economic recovery as the pandemic eases.

A statement issued by the OPEC Secretariat in Vienna, Austria noted that in view of current oil market fundamentals and the consensus on its outlook, the Meeting resolved to: “Reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings, including on 12 April 2020.

“Extend the decision of the 10th OPEC and non-OPEC Ministerial Meeting (April 2020) until the 31st of December 2022.

“Adjust upward their overall production by 0.4 mb/d on a monthly basis starting August 2021 until phasing out the 5.8 mb/d production adjustment, and in December 2021 to assess market developments and Participating Countries’ performance.”

It added that the meeting agreed to continue to adhere to the mechanism to hold monthly OPEC and non-OPEC Ministerial Meetings for the entire duration of the Declaration of Cooperation, to assess market conditions and decide on production level adjustments for the following month, endeavoring to end production adjustments by the end of September 2022, subject to market conditions.

According to the statement, the meeting agreed to adjust, effective 1st of May 2022, the baseline for the calculations of the production adjustments.

The meeting also reiterate the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021.

“Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.

“The meeting decided to hold the 20th OPEC and non-OPEC Ministerial Meeting on 1 September 2021,” the statement added.

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