Major oil producers maintained their modest production increases

2022-06-22 0 By

Xinhua News Agency Vienna, March 31 (Reporter Liu Xinyu)The Organization of Petroleum Exporting Countries (Opec) and non-OPEC oil producers on March 31 held the 27th ministerial meeting via video, decided to maintain the original moderate production plan in May this year.According to a statement issued by Opec, the participating producers reaffirmed the benchmark and production adjustment plan approved by the 19th Ministerial Meeting and the monthly production adjustment mechanism, and raised total monthly production in May by 432,000 barrels per day.’The participating producers believe that the current volatility in the crude oil market is due to continued changes in the geopolitical situation rather than changes in market fundamentals,’ the statement said.Current oil market fundamentals and consensus on the future direction suggest a balanced supply and demand market.In April 2020, Opec reached an agreement with non-OPEC producers, known as Opec plus, to cut production as the COVID-19 pandemic hit oil demand.In July 2021, Opec + reached an agreement at its 19th Ministerial meeting to raise its total output by 400,000 b/d per month from August of that year until the 5.8 million b/d reduction is phased out.Recently, due to the conflict between Russia and Ukraine and the impact of western sanctions on Russia, the international crude oil price exceeded $100 per barrel, and hovering at a high level.The United States, The United Kingdom, Germany and other major oil consumers have repeatedly urged Opec plus in recent weeks to increase production to calm oil prices, but Saudi Arabia, the United Arab Emirates and other Opec members have reaffirmed their commitment to the “Opec Plus” cooperation mechanism.The 28th ministerial meeting between Opec and non-OPEC producers will be held on May 5 this year, according to an Opec statement.