Oil prices recovered slightly on Tuesday morning, after OPEC + sealed the expected increase in production by 648,000 bpd. OPEC is scheduled to hold its next meeting on August 3rd. The production quota set two years ago is set to be completely reduced.
The OPEC + meeting ended relatively quickly on Thursday, agreeing to boost production by 648,000 bpd in August, according to Amel Bakr, Intel’s chief energy correspondent at OPEC.
The meeting of the Joint Ministerial Monitoring Committee (JMMC), which started at 13:00 Vienna time (7:30 AM ET), was followed by the full OPEC + ministerial meeting. The latter was not expected to offer any surprises, with the majority of analysts predicting that the group will point to the increase of the quota previously set for August by 648,000 bpd. With this increase, the quota – set two years ago – will be completely reversed. This would free some of its members who have excess capacity to boost production in September if they choose to, although the lack of compliance with current quotas suggests that any increase in production to meet the August quota – and beyond of this- is doubtful. While it is clear that production cuts will be officially halted from August, the OPEC + group has signaled that it intends to stay united to provide market support, with strong messages coming from the group over the past two months that the alliance with Russia will continue. Four OPEC + representatives told Reuters, however, that today’s meeting would not include discussions on production plans for September. Two others said the issue of September production could be raised. OPEC is scheduled to hold its next meeting on August 3, which will determine production plans for September, Bakr tweeted after the meeting. The group’s first personal meeting after the pandemic is scheduled for the first week of December. Oil prices were slightly higher on Thursday a few minutes after the meeting, with Brent crude trading at $ 116.00 (-0.22%). By Julianne Geiger for Oilprice.com More top readings from Oilprice.com: Download the free Oilprice app today Return to the home page
