OPEC decided to increase oil production in September

A meeting of OPEC energy ministers took place today, at which it was decided to increase oil production in September by only 100 thousand barrels per day. At the same time, Russia and Saudi Arabia will be able to increase their production by 26 thousand barrels. The next meeting is scheduled for September 5, 2022. 

Previously, production quotas were increased as part of the gradual abolition of cuts introduced back in 2020. In August, the restrictions are finally lifted, and the alliance had to decide what to do in September. 

It is noted that OPEC+ considered options from the status quo to a small increase in production. At the same time, for a long time, the participants in the energy deal have not been able to increase production even to the levels stated in previous decisions. This is mainly due to the underinvestment of the industry in most OPEC+ countries.

Oil prices reacted with high volatility to the news of an increase in production. At first, Brent quotes rose to a local maximum of $102.40 per barrel, then sharply collapsed to $99.20 per barrel. 

OPEC also reported that commercial oil reserves in the Organization for Economic Development and Cooperation (the organization includes developed countries that recognize the principles of a free market economy) in June were 163 million barrels less than the level of 2021.