The previous—and current—plan is for the group to add 400,000 barrels per day in output for its members in October. Future plans include an additional 400,000 barrels per day added back into the production quotas each month until the entire production cut is rolled back in May 2022.
The addition of 400,000 barrels in October is, according to OPEC, in response to an increase in oil demand and falling crude oil inventories, particularly in the United States.
“The meeting noted that, while the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD stocks continue to fall as the recovery accelerates,” OPEC’s statement read, in part.
Last month, the Biden administration had asked the group to increase production to alleviate high gasoline prices—much to the ire of many Biden supporters who felt the request was in stark contrast to his otherwise aggressive green energy plans.
Although rumors had surfaced that OPEC was considering a smaller increase to production, contrary to its plan for a 400,000 bpd addition, it was widely assumed that Wednesday’s meeting would result in no changes to OPEC+’s plan.
Of that 400,000 bpd, 253,000 bpd will come from the OPEC group.
Oil prices were still trading down for the day, with WTI trading at $67.89 per barrel, down 0.89%. Brent crude was trading at $70.99 per barrel, also down 0.89% on the day.
The meeting also reaffirmed, “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.”