OPEC+ affirms plans to hike October crude oil production by 400,000 b/d: delegates
1st September 2021 16:07 GMT

OPEC and its allies will hike their collective crude production by 400,000 b/d in October, sticking to the previously agreed plans to continue easing their historic output cuts, according to delegates attending the group’s Sept. 1 meeting.

Despite uncertainties surrounding the impact of Hurricane Ida and stubbornly high COVID-19 infections, the producer alliance is counting on robust oil demand in the months ahead, having reviewed internal forecasts that show demand would far exceed supply through the end of 2021.

Russian Deputy Prime Minister Alexander Novak told state media just prior to the meeting that he expects global oil demand to grow 5.8 million-6 million b/d in 2021, and recover to prepandemic levels of about 100 million b/d in 2022.

"Thanks to joint actions, [OPEC+] managed to remove the stock surplus that was accumulated during decline in demand,” said Novak, who manages Russia's OPEC+ affairs. “Now it is important to maintain this balance and synchronize production and demand.”

Under the OPEC+ accord agreed in July, the alliance is set to raise production by 400,000 b/d each month, though it will convene every month to review those plans to remain responsive to market conditions. If it sticks to its schedule, OPEC+ will eliminate the record cuts it enacted during the market crash in spring 2020 by late 2022, though not all members have the spare production capacity to restore their output to prepandemic levels.

Platts ,
1st September 2021 16:07 GMT