Saudi Gazette report
VIENNA — The eight OPEC+ countries have agreed a further rise in oil output in October. This is in view of a steady global economic outlook and current healthy market fundamentals as reflected in the low oil inventories.
The virtual meeting of the OPEC+ countries, held on Sunday, decided to implement a production adjustment of 137000 barrels per day (bpd) from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023. The 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner, according to a press statement.
The eight countries—Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman—reaffirmed their commitment to market stability on current healthy oil market fundamentals and steady global economic outlook and adjust production. The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of retaining full flexibility to pause or reverse the additional voluntary production adjustments, including the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023
At their last meeting in August, OPEC+, which pumps about half of the world's oil, raised production by 547,000 bpd for September. The OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC). They also confirmed their intention to fully compensate for any overproduced volume since January 2024. The OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation, and their next meeting is scheduled to be held on October 5.
