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The Organization of Petroleum Exporting Countries (OPEC) and its allies have agreed to make another modest increase in production ceiling next month despite rising crude prices.
The oil producers are expected to hike their collective output by up to 400,000 barrels per day in March, in line with the targets set in the previous months, according to a statement released after the 25th OPEC and non-OPEC Ministerial Meeting held on Wednesday.
“In view of the current oil market fundamentals and the consensus on the outlook, the OPEC and participating non-OPEC oil-producing countries (decided to) adjust upward the monthly overall production by 0.4 mb/d for the month of March 2022,” the statement said.
The oil producers, led by Russia and Saudi Arabia, account for more than 40 percent of the world’s oil supply.
They agreed in July last year to increase production by 400,000 barrels per day each month to restore deep cuts made at the start of the COVID-19 outbreak in 2020.
Oil prices have recovered since they flatlined in 2020, hitting $90 per barrel this week for the first time in about eight years.
Brent crude futures, a benchmark for international oil prices, traded at a little over $90 per barrel on Wednesday in London, while US West Texas Intermediate futures traded at more than $89 a barrel.
There have been calls to further step up the output, as energy demand has increased on the back of economic recovery.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
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