July 1, 2022

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OPEC + recommends increasing production to 648,000 barrels in July

OPEC + recommends increasing production to 648,000 barrels in July

Two well-known sources told Reuters that OPEC + recommended an increase of 648,000 barrels in production next July.

One source in OPEC + is that the group is likely to agree to increase oil production to a range of 600,000 barrels per day in July, exceeding the previous monthly increase of 432,000 barrels per day.

If OPEC had decided to increase production by 648,000 barrels in July, the approved increase would have been about 216,000 barrels per day more than before.

The meeting of the “OPEC +” Joint Ministerial Monitoring Committee has already begun at 3:19 pm Saudi time.

The company said, citing sources inside “OPEC +” Alliance Russia can acknowledge that the alliance will offset the current slump in oil production caused by sanctions.

Evidence confirms that participants in the monthly meeting of “OPEC +” today, can agree to gradually fill the shortage of Russian production.

According to Reuters, Russia’s oil production is currently one million barrels per day less than its quota in the OPEC + agreement.

On Tuesday, the Wall Street Journal quoted OPEC representatives as saying that members of the organization had discussed the idea of ‚Äč‚Äčsuspending Russia’s participation in the deal because Western sanctions were detrimental to its ability to increase production.

According to Crystal Energy CEO Carol Knuckle, there is no definite number of analysts agreeing that Russian oil is missing from the market, but it is expected to reach one million barrels, which puts pressure on prices.

In an interview with Nakley al-Arabia, he reportedly stated that “OPEC +” is ready to fill any gaps that could adversely affect the oil markets by creating new inflation.

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In turn, the expert in the field of oil Dr. Fahd bin Zuma hoped that the “OPEC +” federation would reach a kind of consensus to cover up the decline in Russian production.

In an interview with al-Arabia, he said the increase in production in the most productive countries, Saudi Arabia, the United Arab Emirates and Iraq, was to cover up real production, especially in light of the failure of the majority of members. Achieving the target quota within the “OPEC +” agreement will lead to a slight reduction in oil prices. However, it will be more than $ 100 per barrel, which will generate more revenue for countries and ensure price stability in the $ 100 range.

He pointed out that the reality of the market is that demand is expected to exceed 100 million barrels per day, especially in the United States during the summer months and stock shortages.

He also said that the fall in prices in the oil markets was due to the behavior of speculators.