The Organisation of Petroleum Exporting Countries and its allies, known as OPEC+, have agreed to stick to the planned monthly oil output.
OPEC disclosed this on Thursday at the end of the 28th OPEC and non-OPEC Ministerial virtual meeting, citing geopolitical developments and the COVID-19 pandemic as reasons for the decision.
On the oil cartel’s decision, Brent crude futures, the global oil benchmark, rose one percent to $112 a barrel.
Also, West Texas Intermediate climbed over one percent, trading at $109.4 a barrel.
The oil cartel also agreed to increase production by 432,000 barrels per day for June.
“Following the conclusion of the 28th OPEC and non-OPEC Ministerial Meeting, held via videoconference on 5th May, it was noted that continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market,” it said.
“It further noted the continuing effects of geopolitical factors and issues related to the ongoing pandemic. The OPEC and participating non-OPEC oil-producing countries, therefore, decided to:
“Reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12th April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on the 18th July 2021.
“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.432 mb/d for the month of June 2022, as per the attached schedule.”
The oil cartel also decided to reiterate the critical importance of adhering to full conformity and the compensation mechanism, taking advantage of the extension of the compensation period until the end of June 2022.
It said compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
The oil cartel scheduled its next meeting for June 2.
On Wednesday, the European Commission (EU) announced plans to stop importing Russian oil in the next six months as part of sanctions against Moscow for waging war on Ukraine.
