London (Agencies) The “OPEC Plus” alliance approved an increase in oil production by 100,000 barrels per day, starting from September, which gives the market additional supplies. Ministers from the alliance, which includes members of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia, backed the proposal for the increase in an online meeting on Wednesday. In July and August, OPEC Plus pledged to add more than 600,000 barrels per day to the market. Oil prices rose to compensate for its losses earlier, driven by the decision of “OPEC Plus”, as the futures contracts for the benchmark Brent crude jumped by regarding three dollars per barrel, and was trading near 102 dollars per barrel. By 11:50 GMT, Brent crude rose 1.3 percent to $ 101.80 a barrel, and US West Texas Intermediate crude contracts rose 94 cents, or 1%, to $ 95.36 a barrel. According to the decision of “OPEC Plus” – which includes 23 countries – the new increase is divided proportionally among the members, while there were no discussions regarding continuing to increase production beyond September. By September, OPEC Plus will have ended all of the record production cuts it implemented in 2020 to deal with the collapse in demand caused by the Corona pandemic. Bloomberg agency quoted delegates at the meeting, saying that some countries were reluctant to add more supplies due to the possibility of tightening demand for oil, as a result of recession risks in the United States and Corona closures in China. Three delegates from OPEC Plus told Archyde.com before the meeting that the group had reduced its forecast for the oil market surplus this year by 200,000 barrels per day to 800,000 barrels per day. The OPEC Plus alliance is scheduled to hold its next meeting on September 5.
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Oil prices rise for the fourth session due to fears of lack of supplies
written by Alexandra Hartman Editor-in-Chief
SINGAPORE (Archyde.com) – Oil prices rose on Wednesday for the fourth consecutive session, following outpacing fears of a supply shortage, on worries regarding a global economic slowdown. Brent crude futures, the benchmark for August, saw little change to $117.9 a barrel by 0917 GMT. The August contracts expire on Thursday, and the September contracts rose 23 cents, or 0.2 percent, to $114.06 a barrel. US West Texas Intermediate crude futures rose 44 cents, or 4.0 percent, to $112.20 a barrel. Both benchmarks rose more than 2% on Tuesday, due to fears of supply shortages as a result of Western sanctions imposed on Russia, which outweighed fears of slowing growth due to a possible economic recession. The Organization of Petroleum Exporting Countries (OPEC) and OPEC Plus, which includes allies such as Russia, start two days of meetings on Wednesday, and analysts said it was unlikely that there would be a major change this month in production policies. Analysts also warned that political turmoil in Ecuador and Libya might heighten concerns regarding a supply shortage.
“OPEC +” increases production by 648,000 barrels per day
written by Alexandra Hartman Editor-in-Chief
Vienna (AFP)
The oil-producing countries of the “OPEC +” announced yesterday a larger than expected increase in their production this summer in an attempt to limit the rise in prices since the beginning of the war in Ukraine.
The coalition announced in a statement that the representatives of the thirteen member countries of the Organization of the Petroleum Exporting Countries (OPEC) and their ten partners (OPEC +) agreed to “adjust July production by an increase of 648,000 barrels per day,” compared to 432,000 barrels identified in the previous months. The statement stressed the “importance of market stability and balance.” For its part, the United States of America welcomed the decision of OPEC + to increase oil supplies, and the White House said in a statement yesterday that the United States welcomed the decision of the OPEC + countries to increase oil supplies, praising the role of Saudi Arabia, the UAE, Kuwait and Iraq in achieving consensus in OPEC +.
Yesterday, members of the Organization of Petroleum Exporting Countries (OPEC) and its allies met within the framework of “OPEC Plus” to discuss its oil production in a meeting overshadowed by the European Union’s announcement of a ban on Russian crude, which puts Moscow in a critical position within the alliance.
Survey: “OPEC” pumped 28.54 million barrels per day in March
written by Alexandra Hartman Editor-in-Chief
LONDON (Archyde.com) – A Archyde.com survey found that the increase in OPEC oil production in March did not reach the level targeted by an agreement with allies, as increases by Saudi Arabia and other major producers were offset by a decline in the production of African members. The survey found that the Organization of the Petroleum Exporting Countries (OPEC) pumped 28.54 million barrels per day in March, an increase of 90,000 barrels per day from the previous month, but less than the increase of 253,000 barrels per day stipulated in its agreement with allies, including Russia. OPEC and its allies, known as OPEC Plus, are gradually withdrawing production cuts applied since 2020 as demand recovers from the Corona pandemic.
OPEC Plus met yesterday and confirmed previously agreed plans, despite the rise in oil prices to 2008 levels to exceed $139 a barrel in the wake of the Russian attack on Ukraine. The agreement calls for an increase of 400,000 barrels per day in May from all members of OPEC Plus, of which regarding 253,000 barrels per day are shared by the ten OPEC members covered by the agreement.
Archyde.com polls showed production below the increases pledged in the October-January period, but exceeding them in February with many producers unable to pump more crude due to a lack of investment, a trend that has increased with the pandemic. As a result, the 10 OPEC members are pumping far less than the deal called for. The survey found that the level of OPEC commitment to the cuts it pledged rose to 151 percent in March from 136 percent in February.
The survey showed that Nigerian production fell by 100,000 barrels per day following accidents led to the declaration of force majeure in the regions of Boni and Bras River. Force majeure was lifted from the Bras River area.
Libya’s production decreased by 50 thousand barrels per day due to the closure of two oil fields at the beginning of the month.
The production interruption limited the impact of the increase in OPEC production by major producers. The survey found that the largest increase in March was 110,000 barrels per day, and came from Saudi Arabia.
The survey concluded that Iran, which is exempt from production cuts, has been shipping more oil to China in recent months although there was no significant change in its production in March, coinciding with continuing talks on reviving Tehran’s 2015 nuclear deal with world powers.
Venezuela’s production continued to rise, which is also excluded from the cuts.
The survey found that production did not increase in Equatorial Guinea as well as Gabon, due to the lack of additional production capacity.