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(OPEC +) decides to continue its plan to increase oil production by 400,000 barrels per day in March

02-02-2022

The (OPEC +) alliance, which includes members of the Organization of Petroleum Exporting Countries (OPEC) and producers from outside it, decided today, Wednesday, to continue its production plan, by increasing oil production by 400,000 barrels per day next March, with the improvement in the prospects of global oil markets and the ability of demand to withstand the repercussions of the (Corona emerging) virus. Covid 19) and its new variants. The countries of the coalition, which includes 23 countries led by Saudi Arabia and Russia, stated in a statement at the conclusion of a hypothetical ministerial meeting that it had been agreed to continue the production plan, with an increase of 400,000 barrels per day, as of next March, as part of the coalition’s commitment to its plan to gradually restore pumping production that stopped during the pandemic. In their statement, the coalition countries stressed the importance of the member states' commitment to full compliance and the compensation mechanism and benefiting from the extension of the compensation period until the end of June 2022. Global fuel consumption continues to recover from the effects of the crash witnessed in 2020, as traffic increased and factories were active in various Asian oil-consuming countries, as well as a decrease in crude oil inventories in the United States, which led to a recent rise in oil prices to more than $90 a barrel. The countries of the (OPEC +) alliance were able to resume about two-thirds of the production that was stopped in the early stages of the pandemic, while (OPEC) and its partners still expect the emergence of an excess of supply, but it seems less than what was previously thought. The Deputy Prime Minister and Minister of Oil and Minister of Electricity, Water and Renewable Energy, Dr. Muhammad Al-Faris, said earlier today that the global demand for oil is witnessing a continuous recovery in light of the current positive atmosphere, amid improving global economic indicators and the continued movement of withdrawals from oil stocks. Al-Fares pointed out that there are caveats that require continued caution and monitoring of market developments in light of the new mutations of the (Covid 19) pandemic and the effects of high inflation rates, expecting that "the effects of the mutant (Omicron) may be slight in light of the expansion in the distribution of vaccines."