The OPEC + alliance announced the oil production quotas scheduled for the month of next June, after the coalition ministers decided in their meeting today, Thursday, to keep the production policy unchanged.
The ministerial meeting reaffirmed the production adjustment plan and the monthly production adjustment mechanism, and decided to increase the total monthly production by 432 million barrels per day next month.
The meeting also stressed the need for full compliance with production quotas and commitment to the compensation mechanism, taking advantage of extending the compensation period until the end of June 2022, according to a press release issued by the coalition.
Oil production quotas for June
Oil production in Saudi Arabia will witness – in June – an increase of 114 thousand barrels per day, to reach 10.663 million barrels per day, according to the production quotas.
Algeria’s production will increase by 10,000 barrels per day from May, to record 1.023 million barrels per day.
The UAE’s production will also increase by 35,000 barrels per day, to reach 3.075 million barrels per day.
Iraq’s production will reach 4.509 million barrels per day next month, an increase of 48,000 barrels per day.
Historic decision by OPEC
For his part, the Secretary-General of OPEC, Muhammad Barkindo, noted the second anniversary of the essential role played by the member countries of the OPEC + alliance in the wake of the outbreak of the Corona virus pandemic in 2020.
And he said – in his speech before the Joint Technical Committee -: “The out-of-control chaos was met with a historic decision by the OPEC and non-OPEC member countries on April 12, a decision that would prove pivotal to help save the industry from the abyss on which it stood, and thus help in reviving the global economy.
He added, “It was a decision unmatched in terms of scope and duration. A full and transparent commitment to help rebalance and stabilize the market, and this Joint Technical Committee has been vital to its success.”
The Secretary-General also addressed the current uncertainties related to geopolitical developments and the potential consequences for the oil market, calling on countries to continue cooperation within the historical framework in the interest of oil market stability and economic growth.
The OPEC+ alliance expects the oil surplus to rise to 1.9 million barrels per day in 2022, 600,000 barrels per day more than previously forecast, according to an internal report seen by Reuters.
The report – which was prepared before the meeting of the Joint Ministerial Committee – also indicated that oil stocks in the Organization for Economic Cooperation and Development slightly exceed the 2015-2019 average in the fourth quarter of the year.
The alliance expects global oil demand to increase in 2022 by 3.67 million barrels per day, down 480,000 barrels per day from its previous forecast.
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