OPEC+ sticks with planned output hikes, in line with expectations
London (Quantum Commodity Intelligence) — Ministers from the OPEC+ group of oil producers agreed Tuesday to stick with the current policy of gradual output increases for June and July, but defer any decision on August production until a later date.
The decision was widely anticipated with members of the 23-country group waiting for further clarity on a timetable for the possible lifting of Iranian sanctions.
Brent futures were trading sharply higher Tuesday with the August-contract peaking at $71.34/barrel before easing back.
This was the highest price since mid-March.
OPEC+ will meet again July 1, while a separate OPEC only meeting is scheduled for June 24.
Highlights of key OPEC+ meetings
March 2020
OPEC+ group fails to reach an agreement on cutting supplies in face of the COVID-19 pandemic, as both Russia and Saudi increase production, triggering a sharp price drop.
April 2020
Opec+ agrees to a record supply cut of 9.7 million bpd, oil prices recover.
June 2020
Producers agree to extend the first phase of the 9.7 million bpd cuts for another month but announce plans for reduced cuts at 7.7 million bpd starting in August.
December 2020
Members announce a small 500,000 bpd increase for January 2021. Agree to hold meetings on a more regular basis in 2021 to review market conditions.
January 2021
Agree to keep output steady except for small increases in Russia and Kazakhstan. Saudi Arabia announces a voluntary 1 million bpd cut for February and March.
March 2021
Agree to hold output steady apart from Russia and Kazakhstan. Saudi Arabia extends the voluntary 1 million bpd cut until at least April.
April 2021
OPEC+ agrees to gradually increase production by 1 million bpd May-July, while Saudi to restore 1 million bpd of voluntary cuts.
June 2021
Short OPEC+ meeting ends with agreement to stick with existing plan, but no discussion on output changes beyond August.
