Page 6 - MEOG Week 22 2022
P. 6

MEOG                                      POLICY & SECURITY                                            MEOG


       OPEC+ speeds up production




       uptick amid Russia concerns




        OPEC+            OPEC and its partners in the OPEC+ group this  market conditions.”
                         week agreed to add more oil to the market as   She added: “We recognise the role of Saudi
                         concerns about the future of the deal persist.  Arabia as the chair of OPEC+ and its largest pro-
                           On June 2, the group announced that it would  ducer in achieving this consensus amongst the
                         “advance the planned overall production adjust-  group members. We also recognise efforts and
                         ment for the month of September and redis-  positive contributions of UAE, Kuwait and Iraq.”
                         tribute equally the 432,000 barrel per day [bpd]   Meanwhile, there was little to indicate, as
                         production increase over the months of July and  had been widely suggested, that members were
                         August 2022”.                        considering expelling Russia from the alliance.
                           In doing so, OPEC+ production quotas will  Ahead of the OPEC+ meeting, Russian For-
                         rise by 648,000 bpd in both July and August,  eign Minister Sergei Lavrov visited Saudi Ara-
                         thereby unwinding the remainder of the 10mn  bia, where both men praised the importance of
                         bpd withheld from the market since April  co-operation, according to his ministry, signal-
                         2020. Meanwhile, ministers also agreed to give  ling that the kingdom may not be in favour of
                         countries that have previously been guilty of  pushing Russia out of the alliance.
                         over-producing their quotas until December to   “They noted the stabilising effect that the tight
                         compensate for their overproduction.  co-operation between Russia and Saudi Arabia
                                                                                    Targets (mbpd)
                           Meanwhile, the OPEC+ collaboration has  has on world markets for hydrocarbons in this   Increase
                                                                             June 2022
                                                                                           July 2022
                         been extended from September until the end of  strategically important sector,” the ministry said
                                                              OPEC
                         the year, giving them time to decide on the sub-  in a statement on its website. Saudi Arabia has   1.039  1.56%
                                                              Algeria
                                                                                      1.023
                         sequent plan of action.              not commented on the matter.  1.48  1.502       1.49%
                                                              Angola
                           The new timeline for easing production has   Congo (Brazzaville)  0.315  0.32      1.59%
                                                                Beijing has not signalled anything of the sort,
                         been warmly received by the US. Following the  and nor have there been any reports of such, but
                                                              Equatorial Guinea
                                                                                      0.123
                         announcement, White House Press Secretary  China also has some interest in seeing OPEC+   0.125  1.63%
                                                                                      0.181
                                                              Gabon
                         Karine Jean-Pierre said: “The United States  release the oil taps, given that it is, after all, the   0.183  1.10%
                                                              Iran
                                                                                     Exempt
                         welcomes the important decision from OPEC+  world’s biggest oil importer. However, the Chi- Exempt
                                                              Iraq
                                                                                      4.509
                         today to increase supply by more than 200,000  nese government must balance this with its polit-  4.58  1.57%
                                                              Kuwait
                                                                                      2.724
                         barrels per day in July and August based on new  ical interest in ensuring stability in Russia.™  2.768  1.62%
                                                              Libya                  Exempt      Exempt
                                                              Nigeria                 1.772       1.799       1.52%
                                                              Saudi Arabia           10.663      10.833       1.59%
                                                              UAE                     3.075       3.127       1.69%
                                                              Venezuela              Exempt      Exempt
                              Targets (mbpd)                  Total                 Targets (mbpd)  26.276    1.59%
                                                                                     25.865
                       June 2022     July 2022   Increase                    June 2022     July 2022   Increase
        OPEC                                                  OPEC
                                                              Non-OPEC
        Algeria                 1.023       1.039       1.56%  Algeria                1.023       1.039       1.56%
                                                                                                              1.44%
                                                                                      0.696
                                                                                                  0.706
                                                              Azerbaijan
        Angola                   1.48       1.502       1.49%  Angola                 0.199       1.502       1.49%
                                                                                       1.48
                                                              Bahrain
                                                                                                              1.51%
                                                                                                  0.202
        Congo (Brazzaville)     0.315        0.32       1.59%  Congo (Brazzaville)    0.315        0.32       1.59%
                                                                                      0.099
                                                              Brunei
                                                                                                    0.1
                                                                                                              1.01%
        Equatorial Guinea       0.123       0.125       1.63%  Equatorial Guinea      0.123       0.125       1.63%
                                                                                      1.655
                                                              Kazakhstan
                                                                                                              1.51%
                                                                                                   1.68
        Gabon                   0.181       0.183       1.10%  Gabon                  0.181       0.183       1.10%
                                                                                      0.577
                                                                                                              1.39%
                                                              Malaysia
                                                                                                  0.585
        Iran                  Exempt       Exempt             Iran                   Exempt      Exempt       0.00%
                                                              Mexico
                                                                                                  1.753
                                                                                      1.753
                                                                                                   4.58
        Iraq                    4.509        4.58       1.57%  Iraq                   4.509       0.868       1.57%
                                                                                                              1.52%
                                                                                      0.855
                                                              Oman
                                                                                      2.724
                                                                                                  2.768
        Kuwait                  2.724       2.768       1.62%  Kuwait                10.663      10.833       1.62%
                                                                                                              1.59%
                                                              Russia
        Libya                 Exempt       Exempt             Libya                  Exempt      Exempt       1.37%
                                                                                      0.073
                                                                                                  0.074
                                                              Sudan
        Nigeria                 1.772       1.799       1.52%  Nigeria                1.772       1.799       1.52%
                                                                                                              1.59%
                                                                                      0.126
                                                                                                  0.128
                                                              South Sudan
                                                                                                 10.833
        Saudi Arabia           10.663      10.833       1.59%  Saudi Arabia          10.663      16.929       1.59%
                                                                                                              1.40%
                                                              Total
                                                                                     16.696
                                                                                                  3.127
        UAE                     3.075       3.127       1.69%  UAE                   42.561      43.205       1.69%
                                                                                      3.075
                                                              OPEC+
                                                                                                              1.51%
        Venezuela             Exempt       Exempt             Venezuela              Exempt      Exempt
        Total                  25.865      26.276       1.59%  Total                 25.865      26.276       1.59%
        Non-OPEC                                              Non-OPEC
        Azerbaijan              0.696       0.706       1.44%  Azerbaijan             0.696       0.706       1.44%
        Bahrain                 0.199       0.202       1.51%  Bahrain                0.199       0.202       1.51%
        Brunei                  0.099         0.1       1.01%  Brunei                 0.099         0.1       1.01%
        Kazakhstan              1.655        1.68       1.51%  Kazakhstan             1.655        1.68       1.51%
        Malaysia                0.577       0.585       1.39%  Malaysia               0.577       0.585       1.39%
        Mexico                  1.753       1.753       0.00%  Mexico                 1.753       1.753       0.00%
                                                                                                              1.52%
                                                              Oman
                                                                                                  0.868
                                                        1.52%
       P6 Oman                  0.855       0.868 www. NEWSBASE .com                  0.855  Week 22   01•June•2022
        Russia                 10.663      10.833       1.59%  Russia                10.663      10.833       1.59%
        Sudan                   0.073       0.074       1.37%  Sudan                  0.073       0.074       1.37%
        South Sudan             0.126       0.128       1.59%  South Sudan            0.126       0.128       1.59%
        Total                  16.696      16.929       1.40%  Total                 16.696      16.929       1.40%
        OPEC+                  42.561      43.205       1.51%  OPEC+                 42.561      43.205       1.51%
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