Tehran (IP)- OPEC Plus ministers agreed to continue increasing 400,000 barrels of crude oil output per day in October.

Iran PressIran news: The 20th OPEC and non-OPEC Ministerial Meeting, known collectively as OPEC+ was held via video conference on Wednesday, September 1, 2021, under the Chairmanship of Prince Abdul Aziz bin Salman, Saudi Arabia’s Minister of Energy, and Co-Chair Alexander Novak, Russia’s Deputy Prime Minister.

The coalition agreed with the 19th OPEC and non-OPEC Ministerial Meeting to raise their crude oil output by 400,000 BPD monthly from August 2021 to December 2022.

The group also agreed to change the production baseline for five countries, including Kuwait, Iraq, the UAE, Saudi Arabia, and Russia, as of May 2022, reaching 1.630 million BPD in total.

The 21st OPEC and non-OPEC Ministerial Meeting are scheduled to be held on October 4.

OPEC and allied producers cut crude oil output by a record 9.7 million BPD in May 2020 as demand decreased due to the COVID-19 pandemic.

Final declaration of the meeting 

The Meeting noted that, while the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened, and OECD stocks continue to fall as the recovery accelerates.

The Meeting welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC). Overall conformity to the production adjustments was 110% in July, including Mexico (109% without Mexico), reinforcing the trend of high conformity by Participating Countries.

Given current oil market fundamentals and the consensus on its outlook, the Meeting resolved 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 ONOMM on 18 July 2021.

2.    Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th ONOMM and the decision to adjust upward the monthly overall production by 0.4 mb/d for October 2021.

3.    Extend the compensation period until the end of December 2021 as requested by some underperforming countries and request that underperforming countries submit their compensation plans by 17 September 2021. Compensation plans should be submitted in accordance with the statement of the 15th ONOMM.

4.    Reiterate the critical importance of adhering to full conformity and the compensation mechanism, taking advantage of the extension of the compensation period until the end of December 2021.

5.    Hold the 21st OPEC and non-OPEC Ministerial Meeting on 4 October 2021.