OPEC+ had “noted the adverse impact of volatility and the decline in liquidity on the current oil market and the need to support the market’s stability and its efficient functioning…reports Asian Lite News
Oil prices rose more than 3 percent on Monday as the Organisation of the Petroleum Exporting Countries and its allies agreed a small production cut to bolster prices, media reported.
The Monday meeting of the OPEC+, which includes Russia, agreed to reduce output by 100,000 barrels per day, with a statement saying “the production level was only intended for the month of September 2022.”
Brent crude futures futures for November delivery rose $3.43 to $96.45 a barrel, a 3.7 percent gain, by 9:14 a.m. EDT (1314 GMT), the Arab News reported.
OPEC+ had “noted the adverse impact of volatility and the decline in liquidity on the current oil market and the need to support the market’s stability and its efficient functioning,” Saudi Press Agency reported after the meeting.
“The Meeting noted that higher volatility and increased uncertainties require continuous assessment of market conditions and readiness to make immediate adjustment to production in different forms, if needed, and that OPEC+ has the commitment, the flexibility, and the means within the existing mechanisms of the Declaration of Cooperation to deal with these challenges and provide guidance to the market,” it added.
According to Arab News, the OPEC+ would hold its next meeting on October 5.
Russia, the world’s second-largest oil producer and a key OPEC+ member, does not support a production cut at this time and the producer group is likely to decide to keep output steady, the Wall Street Journal reported on Sunday, citing unnamed sources.
OPEC+ agreed to increase output by 648,000 bpd in both July and August, as they fully unwind nearly 10 million bpd of cuts implemented in May 2020 to counter the COVID-19 pandemic.