Major oil-producing countries agree to gradually increase production from May

The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries agreed on the 1st to gradually increase oil production in the three months starting in May.

OPEC and non-OPEC oil-producing countries held a ministerial meeting via video on the same day. The meeting statement stated that member states have reached an agreement on the level of production increase in May, June and July this year, and will continue to abide by the monthly ministerial meeting to assess market conditions and decide on the next month’s production adjustment scale. The adjustment range does not exceed an average of 500,000 barrels per day.

The statement said that with the support of the new crown vaccination plan and stimulus plan of major economies, the world energy market has improved, but OPEC and non-OPEC oil-producing countries have noticed that the fluctuations in recent weeks require member states to continue to adopt a cautious approach. To monitor market development.

According to the calculation of production quotas published on the OPEC website, OPEC and non-OPEC oil-producing countries will increase 350,000 barrels a day in May, and the increase in June will be the same as that in May. In July, output will increase by 441,000 barrels a day.

Saudi Energy Minister Abdul Aziz bin Salman said on the same day that in the face of the impact of the epidemic on the economy, the recovery of global oil demand is uneven. Until there are undisputed signs of economic recovery, OPEC and non-OPEC oil-producing countries should remain cautious when deciding on future levels of oil production.

According to the agreement reached on December 3, 2020, OPEC and non-OPEC oil-producing countries will increase production by an average of 500,000 barrels per day in January 2021. The parties will hold ministerial meetings every month to assess market conditions and decide on next month’s output. Adjust the scale so that the monthly adjustment range does not exceed 500,000 barrels per day. OPEC and non-OPEC oil-producing countries held a meeting in early January this year to reach an agreement on crude oil production in February and March, and agreed on March 4 to continue to maintain most of the production reduction policy until April.