OPEC+ cuts oil production quota for October by 100,000 barrels per day

The Organization of the Petroleum Exporting Countries (OPEC) and the countries that joined the oil agreement with it (OPEC +) decided to reduce the oil production quota for October by 100,000 barrels per day, says on the website of the organization following the meeting of ministers of these countries. As a result, Russia’s quota will be reduced by 26,000 barrels per day.

“Return to August 2022 production levels for OPEC and non-OPEC countries for October 2022 in accordance with the attached table, noting that the upward adjustment of production levels by 0.1 million barrels per day was set only for September 2022,” the statement said.

During the meeting, OPEC+ ministers noted that volatility and reduced liquidity had a negative impact on the current oil market. The ministers said that against the backdrop of rising volatility and uncertainty, it is necessary to constantly assess market conditions and, if necessary, immediately adjust production “in various forms.”

On August 22, Saudi Energy Minister Abdulaziz bin Salman Al Saud told Bloomberg that due to the extreme volatility and lack of liquidity in the market, OPEC+ could cut oil production. At the same time, on September 2, the G7 countries announced a decision to introduce a price ceiling for Russian oil and called on the OPEC+ countries to increase oil production.

In August, OPEC+ unscheduledly raised its oil production quota for September by 100,000 barrels per day. Previously, the production quota from May to September was set at 432,000 barrels per day. However, in early June, OPEC+ redistributed the September quota to July and August, bringing the figure up to 648,000 bbl/d for two summer months. The quota for September was supposed to remain at the same level.