The world's major oil producers on Thursday agreed to stick to the existing plan of raising production by 400,000 barrels per day (bpd) in December and incrementally phasing out production cuts.
The 23-members of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, held the 22nd Ministerial Meeting via videoconference and reaffirmed the decision they made in their meeting in July.
The group said they decided to increase the production by 400,000 bpd in December “to ensure a stable and a balanced oil market, the efficient and secure supply to consumers and to provide clarity to the market at times when other parts of the energy complex outside the boundaries of oil markets are experiencing extreme volatility and instability.”
In July, OPEC+ countries had agreed to raise output by 400,000 bpd from August to December and extend its production cut agreement from April 2022 to December 2022.
The next meeting of OPEC and non-OPEC members is scheduled for Dec. 2.
- Oil ignores US pressure to increase output
The decision to stick to the existing deal came despite pressure from the US administration who insisted the group increase its combined production in an effort to combat climbing gasoline prices which are feeding concerns that higher inflation due to rising energy costs could derail the economic recovery from the COVID-19 pandemic.
The US had made the same request several times.
Speaking at a press conference at the United Nations Climate Change Conference (COP26) in Glasgow, Scotland on Wednesday, US President Joe Biden signaled out Russia and oil-producing nations for the rise in gasoline prices.
'That is a consequence of thus far the refusal of Russia or the OPEC nations to pump more oil,' Biden said.
As the meeting ended, Brent increased to $82.27 per barrel, posting a 0.34% rise from trade during the previous session.
American benchmark West Texas Intermediate (WTI) was at $80.56 per barrel at the same time, recording a 0.37% fall.
By Sibel Morrow