The Organisation of Petroleum Exporting Countries (OPEC) on Thursday agreed to increase its planned monthly oil output, as the European Union agreed in principle to cut 90 per cent of oil imports from Russia by the end of the year.
OPEC disclosed this at its 29th OPEC and non-OPEC ministerial meeting, according to a statement released by the organisation on Thursday.
It noted that global refinery intake is expected to increase after seasonal maintenance.
The meeting highlighted the importance of stable and balanced markets for both crude oil and refined products.
The development came after the EU agreed to ban 90 per cent of oil imports from Russia by the end of the year.
On Monday, the EU announced it has agreed to ban 90 per cent of Russian oil imports by the end of the year as part of sanctions for Russia’s invasion of Ukraine.
In a statement on Thursday, OPEC said it decided to reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on 18 July 2021.
“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.432 mb/d for the month of July 2022,” the oil cartel said.
READ ALSO: OPEC maintains monthly output as EU proposes ban on Russian oil
“Advance the planned overall production adjustment for the month of September and redistribute equally the 0.432 mb/d production increase over the months of July and August 2022. Therefore, July production will be adjusted upward by 0.648 mb/d as per the attached schedule.
“Extend the compensation period until the end of December 2022 as requested by some underperforming countries and request that underperforming countries submit their plans by 17 June 2022. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
“Reiterate the critical importance of adhering to full conformity and to the compensation mechanism,” it said.
The body further announced that its next meeting will be held on June 30.
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