The world's biggest oil producers agreed Thursday to adhere to the current plan of increasing output by 400,000 barrels per day (bpd) through May, adding 32,000 bpd by adjusting the baseline production levels of some countries.
The 23-members of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, held the 27th Ministerial Meeting via videoconference.
The group said, '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.'
The OPEC+ group reduced its daily crude oil production by approximately 10 million barrels in April 2020 due to the sharp decline in demand following the emergence of the COVID-19 pandemic. As global economies and oil demand started to recover, the group also began to ease these cuts in April 2021.
Since July last year, major producing countries have been raising output incrementally by 400,000 bpd.
However, the group added 32,000 bpd by raising the production baselines of the UAE, Iraq, Kuwait, Saudi Arabia and Russia starting from May 2022, in line with a decision agreed upon in the same July meeting.
The next meeting of OPEC and non-OPEC members is scheduled for May 5.
By Sibel Morrow