OPEC+ sticks with planned oil output hike in August

The Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, have agreed to stick to the planned increase in oil output.

OPEC+ disclosed this on Thursday at the end of its 30th OPEC and non-OPEC ministerial virtual meeting, emphasising maintaining its oil production policy.

The organisation approved the plans to add 648,000 barrels a day by August.

This means the Middle East-dominated group will increase monthly overall production for August to 648,000 barrels per day.

“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,” it said.

“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th and 29th OPEC and non-OPEC ministerial meetings and the decision to adjust upward the monthly overall production for the month of August 2022 by 0.648 mb/d.

“Reiterate the critical importance of adhering to full conformity and to the compensation mechanism. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.”

The oil cartel scheduled its next meeting for August 3.

The decision to raise output by 648,000 bpd represents an increase of 216,000 bpd from 432,000 bpd in recent months.

In May, the oil cartel had agreed to increase production by 432,000 barrels per day for June.

Meanwhile, the group also agreed to raise the global oil supply due to pressures from the western region to pump more oil.