OPEC+ agreed in April two years ago to implement a large-scale production cut of 9.7 million barrels per day, supporting international crude oil prices.
After that, in July last year, it was agreed to gradually increase crude oil production, citing that global demand for crude oil, which had temporarily declined due to the effects of the new coronavirus, is increasing.
Since August last year, the production volume will be increased by about 400,000 barrels per day every month, and from May to June this year, the increase will be expanded to 432,000 barrels per day.
Furthermore, in response to requests from Europe and the United States, which are suffering from inflation due to soaring energy prices, the increase in production was expanded to 648,000 barrels per day in July and August.
On the other hand, crude oil prices are trending downward due to the view that the global economy will slow down due to the rapid interest rate hikes in Europe and the United States and the continuation of China’s “zero corona” policy, and the demand for crude oil will be sluggish.
In response to President Biden of the United States visiting the Middle East in July and urging to increase crude oil production, OPEC Plus decided to increase production by 100,000 barrels per day, albeit slightly, in September, but reduced production from October. Since last month, we have been implementing a production cut of 2 million barrels per day, which is the largest reduction since 2020.