OPEC and Russia confirm the moderate increase in production planned for June

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This content was published on May 05, 2022 – 12:50

Vienna, May 5 (EFE) – The OPEC+ alliance, led by Saudi Arabia and Russia, confirmed this Thursday the approval of a moderate increase in its crude oil supplies, of 432,000 barrels per day, as of June 1, and re-study the situation on June 2.

After a brief videoconference, the ministers of the group of 23 countries endorsed the decision adopted on July 18, 2021 “to adjust monthly global production upwards by 0.432 mb/d for the month of June 2022,” reported the Organization of Countries Oil Exporters (OPEC) in a statement.

The note refers to the roadmap agreed last summer to gradually recover the level of pre-pandemic pumping, with moderate monthly increases, after having drastically cut it in May 2020 to deal with the crisis caused by the covid pandemic. .

According to that plan, the joint production ceiling of 20 countries -all except Venezuela, Iran and Libya, the OPEC partners that are exempt from the commitment to limit their extractions- will rise to 42,558 million barrels per day (mbd) next month.

Of that volume, 25,864 mbd correspond to the pumping of 10 OPEC partners and 16,694 to the 10 independent producing nations and allies since 2016, among which are Russia, Kazakhstan and Mexico.

Today’s meeting took place one day after the European Commission (EU) proposed to gradually veto, until the end of the year, imports of Russian crude oil, a measure that even without being approved by the Twenty-seven, already caused a sharp rise in the “petroprices”.

The price of a barrel of Brent crude oil ended yesterday’s session in the London market at $110.2, 4.82% more than at the close of Tuesday, while in New York, Texas intermediate oil (WTI) advanced 5.27%, to $107.81.

The rise offset a downward trend caused by the severe restrictions imposed in China to tackle new outbreaks of covid, a factor that worries producers.

Be that as it may, OPEC + did not offer a press conference after its virtual meeting and in its brief final statement it limited itself to pointing out that there was “consensus” in the vision that “the fundamentals of the oil market point to a balanced market”.

Of course, the ministers drew attention to “the continuous effects of geopolitical factors and issues related to the ongoing pandemic”, in what would be their only allusion to the convulsions caused in the energy markets by Russia’s invasion of Ukraine and the strict lockdowns in China.

The next meeting of this oil alliance that controls about 40% of the world supply of “black gold” has been called for June 2. EFE



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