Iran Press/ Iran News: According to Shana, the Meeting noted the dynamic and rapidly evolving oil market fundamentals, necessitating continuous assessment of market conditions.
The Meeting noted that the severely limited availability of excess capacity necessitates utilizing it with great caution in response to severe supply disruptions.
The Meeting noted that chronic underinvestment in the oil sector had reduced excess capacities along the value chain (upstream/midstream/downstream).
The Meeting highlighted with particular concern that insufficient investment into the upstream sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-participating non-OPEC oil-producing countries, some OPEC Member Countries, and participating non-OPEC oil-producing countries.
It noted that preliminary data for OECD commercial oil stocks level stood at 2,712 MB in June 2022, which was 163 MB lower than the same time last year, and 236 MB below the 2015-2019 average, and that emergency oil stocks have reached their lowest levels in more than 30 years.
The Meeting also noted that Declaration of Cooperation conformity had averaged 130% since May 2020, supported by voluntary contributions of some participating countries.
Emphasizing the value and importance of maintaining consensus as essential to the cohesion of OPEC and participating non-OPEC oil-producing countries, and in view of the latest oil market fundamentals, the Participating Countries decided to:
1. Reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on 18 July 2021.
2. Adjust upward the production level for OPEC and non-OPEC Participating Countries by 0.1 mb/d for the month of September 2022 as per the attached table. This adjustment does not affect the baselines decided on the above-mentioned Meeting on 18 July 2021.
3. Reiterate the critical importance of adhering to full conformity and to the compensation mechanism. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
4. Hold the 32nd OPEC and non-OPEC Ministerial Meeting on 5 September 2022.
OPEC+ agrees to raise output by 100,000 bpd for September
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, the OPEC+ coalition, agreed on Wednesday to increase crude oil output by 100,000 barrels per day in September.
The 23 members of the OPEC and non-OPEC coalition, collectively known as OPEC+, agreed during the 31st OPEC and non-OPEC Ministerial Meeting, held via video conference on Wednesday, August 3, 2022, to add 100,000 bpd to their crude oil output in September.
OPEC+ cut its production by 9.7 million barrels per day in May 2020, equivalent to about 10 percent of global demand, in response to the collapse in demand at the height of the Covid-19 outbreak, but has since facilitated supply constraints.
Sources said the OPEC+ members’ compliance reached 320 percent in June, which shows the coalition pumped about 3 million bpd of oil below their quotas.
The coalition decided to hold the 32nd OPEC and Non-OPEC Ministerial Meeting on September 5, 2022.
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