Oil prices jump as OPEC + confirms increase in production by 648,000 Bpd

By Julian Geiger – June 30, 2022, 8:00 a.m. CDT

• Oil prices rose slightly on Tuesday morning after OPEC + saw an expected increase in production of 648,000 barrels per day.
• OPEC is due to hold its next meeting on August 3rd.
• The exit quota set two years ago is about to be completely abolished.

The OPEC + meeting ended relatively quickly on Thursday, agreeing to increase production by 648,000 barrels per day in August, according to OPEC Energy Intel chief correspondent Amena Bakr.

The meeting of the Joint Ministerial Monitoring Committee (JMMC), which began at 13:00 Vienna time (7:30 ET), was followed by the full OPEC + ministerial meeting. The latter was not expected to offer any surprises, as most analysts predicted that the group would support the quota increase, which it had previously set for August at 648,000 barrels per day.

With this increase, the quota set two years ago will be completely abolished.

This would free up some of its members, who have the spare capacity to increase production in September, if they decide, although the lack of compliance with current quotas suggests that any increase in production to cover the August quota – and beyond – is doubtful.

Although it is clear that production cuts will be formally lifted in August, the OPEC + group has signaled that it intends to stick together to provide market support, with consistent signals from the group over the past few months that the alliance with Russia will continue. However, four OPEC + delegates told Reuters that today’s meeting would not include discussions on production plans for September. Two others said the topic of the September production could emerge.

OPEC is due to hold its next meeting on August 3rd, which will set production plans in September, Bakr said in a tweet after the meeting.

The group’s first personal meeting since the pandemic is scheduled for the first week of December.

Oil prices were slightly higher on Thursday after the meeting, with Brent oil trading at $ 116.00 (-0.22%).

By Julian Geiger for Oilprice.com

More popular readings from Oilprice.com:

Download the free Oilprice app today

Back to home page