OPEC will cut its production by 2 million barrels a day

MADRID, 5 Oct. (EUROPA PRESS) -

The Organization of Petroleum Exporting Countries (OPEC) and its allies, led by Russia, which together form the group known as OPEC, have decided to undertake a downward adjustment of 2 million barrels per day as of next November compared to supply levels reached last August.

In a statement published at the end of the meeting of the ministers of the OPEC countries, who have met this Wednesday in Vienna for the first time in person since 2020, the cartel has confirmed its decision to make "a downward adjustment overall production by 2 mb/d, from August required production levels, beginning in November 2022."

In this way, the countries of the group will pump a total of 41,856 million barrels per day in November, compared to 43,856 million in August, including a contribution of 25,416 mb/d by OPEC, compared to the previous 26,689 mb/d , while countries outside the organization will produce 16,440 mb/d.

Saudi Arabia and Russia will extract 10.478 million barrels of crude per day, respectively, compared to the previously agreed quota of 11.004 mb/d, which implies a downward adjustment of 526,000 barrels per day each.

Likewise, the countries have decided to adjust the frequency of the monthly meetings so that they are every two months in the case of the Joint Ministerial Monitoring Committee (JMMC), while the OPEC and non-OPEC ministerial summits (ONOMM) will be every 6 months, although the Committee will have the authority to hold additional meetings, or to request a summit at any time to address market developments if necessary.

In this way, the ministers of the crude exporting countries have agreed to hold the next OPEC and Non-OPEC summit on December 4, 2022.

The announcement of the OPEC production adjustment has pushed up the prices of a barrel of oil, which in its Brent variety, a reference for Europe, climbed to 93.35 dollars, 1.69% more, its highest level from September 21.

On its side, the price of West Texas Intermediate (WTI) crude oil, a benchmark for the United States, rose 1.41% to $87.74, the highest since the middle of last month.