OPEC+ Ignores Biden’s Plea to Boost Oil Production
Posted on 11/04/2021
OPEC and its oil-producing allies (OPEC+) agreed to continue with their current oil producing output plan. The oil producers in the group decided against producing more oil in the backdrop of increasing prices of crude oil. U.S. President Joe Biden pleaded with OPEC cartel to increase oil production to lower prices. Biden was instrumental in the closing of the Keystone pipeline at the start of his administration. Saudi Arabia is back above pre-COVID production levels, while U.S. oil production now lags.
OPEC+ will rollover its August 2021 program to gradually increase oil production by 400,000 barrels per day each month.
The OPEC statement doesn’t make any reference to those countries that are struggling to attain their output targets.
The price of OPEC basket of thirteen crudes stood at $81.58 a barrel on Wednesday, compared with $83.37 the previous day, according to OPEC Secretariat calculations. The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE), and Merey (Venezuela).
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22nd OPEC and non-OPEC Ministerial Meeting concludes No 33/2021
Vienna, Austria
04 Nov 2021
The 22nd OPEC and non-OPEC Ministerial Meeting, held via videoconference, concluded on Thursday November 4 2021.
The meeting reaffirmed the continued commitment of the Participating Countries in the Declaration of Cooperation (DoC) to ensure a stable and a balanced oil market, the efficient and secure supply to consumers and to provide clarity to the market at times when other parts of the energy complex outside the boundaries of oil markets are experiencing extreme volatility and instability, and to continue to adopt a proactive and transparent approach which has provided stability to oil markets. In view of current oil market fundamentals and the consensus on its outlook, the Meeting resolved to:
Reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on the 18 July 2021.
Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of December 2021, as per the attached schedule.
Reiterate the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of December 2021. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
Hold the 23rd OPEC and non-OPEC Ministerial Meeting on 2 December 2021.
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