The world's major oil producers Tuesday agreed on sticking to the previously planned production quota, which requires the group to incrementally increase output until July, citing “oil demand showing clear signs of improvement”.
The 23-members of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, held the 17th Ministerial Meeting via videoconference.
The group had agreed to raise its production by 350,000 bpd in May and June and 400,000 bpd in July. Saudi Arabia's additional production cut of 1 million bpd would also be gradually phased out with a production increase of 250,000 bpd in May, 350,000 bpd in June and 400,000 bpd in July.
With the new output quota, the group's collective production will reach 5.8 billion bpd in July.
In a statement released after the meeting, the group noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and OECD stocks falling as the economic recovery continued in most parts of the world as vaccination programmes accelerated.
Overall conformity to the production adjustments was 114% in April, reinforcing the trend of high conformity by participating countries, it said.
Speaking to reporters after the meeting, Saudi Arabia's Energy Minister Abdulaziz bin Salman said OPEC+ would hold monthly meetings “to give the market the assurance, and the comfort that we will continue to be attentive and continuously monitoring the situation.”
The minister underlined that OPEC+ would not leave the market exposed to “any lack of attendance.”
The next meeting of OPEC and non-OPEC members is scheduled for July 1.
By Sibel Morrow