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MIL OSI Translation. Region: Russian Federation –

The largest oil producing countries decided to continue increasing production by 400 thousand barrels per day in March in order to maintain the balance of supply and demand.

Deputy Prime Minister Alexander Novak chaired the 25th meeting of the Ministerial Meeting of OPEC and non-OPEC countries as a co-chair. At the videoconference meeting, the fulfillment of the voluntary obligations of oil producing countries to regulate production in December 2021, as well as forecasts for the development of the situation in 2022, were considered.

As a result of the consultations, the participating countries decided to keep the previously approved agreements on continuing to increase production by a total of 400 thousand barrels per day in March 2022.

It was noted that, in general, OPEC+ countries are successfully implementing recommendations to increase production: the execution of the deal in December 2021 reached 122%. At the same time, the delegates stressed the need to adhere to the agreements reached for those countries that had previously failed to fulfill their voluntary obligations.

As Alexander Novak noted following the meeting, despite the ongoing uncertainties regarding the impact of the incidence of the Omicron strain, global demand for oil and petroleum products continues to grow. Russia, in particular, is executing the deal at high levels close to 100%, and in March 2022, Russian oil companies, according to agreements within the framework of OPEC +, will be able to additionally increase production by 100 thousand barrels of oil per day. “This will give us a 90% chance to restore the level of contracted volume. Let me remind you that in May 2020, Russia reduced production by 2 million barrels of daily production. Thus, taking into account the decision made in March, we will reach the restoration of 1.8 million barrels of daily production,” he added.

The next, 26th OPEC+ ministerial meeting is scheduled for March 2, 2022.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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