"OPEC Plus", which is made up of major oil-producing countries such as Saudi Arabia and Russia, will hold a meeting on the 5th to decide future crude oil production.
While Saudi Arabia and other countries have suggested the possibility of production cuts due to the downward trend in international crude oil prices, there is also a view that production may be left unchanged due to the difficulty in forecasting the future.
Saudi Arabia-led OPEC = Organization of Petroleum Exporting Countries and OPEC Plus, which is made up of non-member oil-producing countries such as Russia, will hold an online meeting on the 5th to decide the production volume from next month onwards.
The futures price of WTI, a benchmark for international crude oil trading, temporarily exceeded $130 per barrel after Russia's invasion of Ukraine. It's gone down to the dollar level.
Oil-producing countries are becoming increasingly cautious about this downward trend in crude oil prices. Supportive statements abound.
On the other hand, there is a view that oil-producing countries may leave their production levels unchanged due to the difficult outlook for the world economy and the aim of avoiding confrontation with the United States, which is suffering from record inflation. Results are noted.
OPEC Plus Adjust production based on trends in crude oil demand
Saudi Arabia-led OPEC = Organization of Petroleum Exporting Countries and non-member oil-producing countries such as Russia have formed a group called "OPEC Plus" and are adjusting crude oil production while monitoring crude oil demand trends.
OPEC+ agreed in April two years ago to implement a large-scale production cut of 9.7 million barrels per day, supporting international crude oil prices.
After that, in July last year, it was agreed to gradually increase crude oil production, citing that global demand for crude oil, which had temporarily declined due to the effects of the new coronavirus, is increasing.
Since August last year, the production volume will be increased by about 400,000 barrels per day every month, and from May to June this year, the increase will be expanded to 432,000 barrels per day.
Furthermore, in response to requests from Europe and the United States, which are suffering from inflation due to soaring energy prices, at the meeting on June 30, the production increase planned for September was brought forward, and in July and August, the daily production increase was increased to 640,000. Expanded to 8000 barrels.
On the other hand, aggressive interest rate hikes in Europe and the United States are expected to slow down the global economy and demand for crude oil will stagnate, so crude oil prices are on a downward trend.
Although President Biden of the United States visited the Middle East in July and urged him to increase crude oil production, he decided to increase production, but this month it was limited to 100,000 barrels per day.