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Ministerial Meeting (31) of OPEC+

03-08-2022

Wednesday; Muharram 5 1444 AH, corresponding to August 3, 2022 AD Today, the thirty-first ministerial meeting of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers (OPEC Plus) was held via video conference. The meeting included access to oil market data, which was characterized by continuous change and development, which confirms the importance of continuous evaluation of market conditions. Also, the severe reduction in surplus production capacities calls for the use of these capacities with great caution when responding to severe disruptions in supplies. The attendees also noted that the severe shortage of investments in the petroleum industry has limited the availability of surplus production capacities at all stages of the value chain in this industry (exploration and production, processing and transportation, refining and distribution). They expressed their concern, in particular, that insufficient investments in the exploration and production sector will affect the availability of sufficient supplies to the market, in time, to meet the increasing demand after 2023 AD, and this includes non-OPEC and non-participating oil-producing countries In the OPEC Plus agreement, some OPEC member countries, and some non-OPEC participating countries in the OPEC Plus agreement. The meeting reviewed preliminary data that indicated that the level of commercial petroleum stocks in the Organization for Economic Cooperation and Development (OECD) amounted to 2.712 million barrels in June 2022 AD, which is 163 million barrels less than the same period last year, and 236 million barrels less than the average The period between 2015-2019, and that emergency petroleum stocks reached their lowest levels in more than 30 years. The attendees also confirmed that the rate of commitment of the countries party to the OPEC Plus agreement to production quotas has reached 130%, since May 2020, supported by voluntary contributions from some participating countries. Emphasizing the value and importance of maintaining consensus, as necessary for the cohesion of the agreement that brings together countries from OPEC and non-OPEC producers, in light of recent developments in the fundamentals of the oil market, the countries decided on the following: 1. Continuing to confirm the decision of the tenth ministerial meeting of the member states of the Organization of held on July 18, 2021. 2. Adjusting the level of production for the member countries of the Organization of Petroleum Exporting Countries and producing countries from outside it, by increasing it by 100,000 (one hundred thousand) barrels per day for the month of September 2022 AD, according to the attached table. This amendment will not affect the reference production levels agreed upon at the aforementioned meeting (July 18, 2021 meeting). 3. Reiteration of the paramount importance of full compliance with the specified production quotas and the compensation mechanism. And the need to present compensation plans and schedules, according to the statement of the fifteenth ministerial meeting of OPEC member countries and producing countries from outside it. 4. The thirty-second ministerial meeting of OPEC member countries and non-OPEC producing countries was held on September 5, 2022 AD.