OPEC to raise oil production level by 0.1mb/day in September

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BY BAMIDELE FAMOOFO

Uba Group

The Organisation of Petroleum Exporting Countries has said it will adjust upward the production level for OPEC and non-OPEC Participating Countries by 0.1 mb/d for the month of September 2022.

OPEC made this known in a communiqué after its 31st OPEC and non-OPEC ministerial meeting held via videoconference on Wednesday in Vienna, Austria.

The meeting noted that chronic underinvestment in the oil sector has reduced excess capacities along the value chain (upstream/midstream/downstream).

It highlighted with particular concern that insufficient investment into the upstream sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-participating non-OPEC oil-producing countries, some OPEC Member Countries and participating non-OPEC oil-producing countries.

It noted that preliminary data for OECD commercial oil stocks level stood at 2,712 mb in June 2022, which was 163 mb lower than the same time last year, and 236 mb below the 2015-2019 average, and that emergency oil stocks have reached their lowest levels in more than 30 years.

The meeting noted the dynamic and rapidly evolving oil market fundamentals, necessitating continuous assessment of market conditions.

The meeting noted that the severely limited availability of excess capacity necessitates utilizing it with great caution in response to severe supply disruptions.

The meeting also noted that Declaration of Cooperation conformity has averaged 130 percent since May 2020, supported by voluntary contributions of some participating countries.