By Julianne Geiger – June 30, 2022 at 8:00 AM CDT
- Oil prices rose slightly on Tuesday morning after OPEC + marked the expected increase in production of 648,000 bpd.
- OPEC will hold its next meeting on 3 August.
- The production quota established two years ago is about to recede completely.
The OPEC + meeting ended Thursday relatively quickly, agreeing to increase production by 648,000 bpd in August, according to Energy Intel’s chief OPEC correspondent Amena Bakr.
The meeting of the Joint Ministerial Monitoring Committee (JMMC), which began at 13:00 Vienna time (7:30 am ET), was followed by the full OPEC + ministerial meeting. The latter was not expected to offer any surprises, as most analysts predicted that the group would mark the quota increase it had previously set for August of 648,000 bpd.
With this increase, the quota, set two years ago, would be completely reversed.
This would release some of its members who have spare capacity to increase production in September if they so choose, although the lack of compliance with current quotas suggests that any increase in production to meet the August quota — and beyond. – It is doubtful.
While it is clear that production cuts will be officially completely reduced from August, the OPEC + group has indicated that it intends to stay united to support the market, with consistent signals from the group during the last two months that the The alliance with Russia would continue. Four OPEC + delegates told Reuters, however, that today’s meeting would not include discussions on September production plans. Two others said the September production issue could come up.
OPEC will hold its next meeting on August 3, which will determine September production plans, Bakr said in a tweet after the meeting.
The first face-to-face meeting of the group since the pandemic is scheduled for the first week of December.
Oil prices rose slightly Thursday after the meeting, with Brent crude trading at $ 116.00 (-0.22%).
By Julianne Geiger for Oilprice.com
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