OPEC+ Boost Production Target By 100,000 Bpd In September

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The Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have given the go-ahead to lift their oil production targets for September by 100,000 bpd

The group disclosed this at the end of the 31st OPEC and non-OPEC ministerial meeting held on Wednesday.

Today’s OPEC+ meeting is the first meeting since the group decided to roll back by the end of August all the cuts from May 2020, when the current agreement started.

The oil cartel added a minuscule 100,000 bpd to the market in September, citing low investment in the global oil sector, and unavailability of excess capacity, among others.

The decision is coming despite President Joe Biden’s trip to Saudi Arabia last month to persuade OPEC’s leader to pump more to help rein in prices boosted by rebounding demand and Moscow’s invasion of Ukraine.

The State Department also cleared a possible Foreign Military Sale to the United Arab Emirates (UAE) for an estimated cost of $2.245 billion.

Saudi Arabia and the UAE are believed to be the only two producers in OPEC+ and in the world currently holding enough spare capacity to raise their oil production.

A 100,000 bpd increase for the entire group will likely mean less than a 30,000 bpd increase for Saudi Arabia, and a less than 10,000 bpd increase for the UAE.




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