OPEC+ shrugs off demand to pump more oil, sticks to modest output increase

The Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, have ignored calls by the United States to pump more oil, sticking to already agreed modest monthly output.

OPEC disclosed this at the end of the 27th OPEC and non-OPEC ministerial meeting held via videoconference on Wednesday.

The oil cartel agreed to increase production by 432,000 barrels per day, as planned, shunning Western pressure to pump more crude.

OPEC said the current volatility in the oil market is a result of geopolitical developments — the Russia-Ukraine war.

“Following the conclusion of the 27th OPEC and non-OPEC Ministerial Meeting, held via videoconference on March 31, it was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a well-balanced market, and that current volatility is not caused by fundamentals, but by ongoing geopolitical developments,” OPEC said. 

“Reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12th April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial meeting on the 18th July 2021.

“Reconfirm the baseline adjustment, the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.432 mb/d for the month of May 2022, as per the attached schedule.

“Reiterate the critical importance of adhering to full conformity and to the compensation mechanism taking advantage of the extension of the compensation period until the end of June 2022. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.”

The oil cartel slated its next meeting for May 5  to determine the oil output for June. 

Interruptions in the production flow of the UAE have further heightened undersupply fears following attacks on its storage facilities. 

Saudi Arabia had said it would not be responsible for disruptions in the global oil supply amid the recent attacks.