OPEC+decided to reduce the daily output by 2 million barrels from November

On October 5 local time, the 33rd Ministerial Meeting between the Organization of Petroleum Exporting Countries (OPEC) and non OPEC oil producing countries was held in Vienna, Austria. The meeting decided to reduce the total crude oil production by 2 million barrels per day from November.

The meeting held in Vienna on the 5th was the first offline ministerial meeting between OPEC and non OPEC oil producing countries since March 2020.

The statement issued after the meeting pointed out that, in view of the uncertainty of the global economy and the prospects of the oil market, and the need to strengthen long-term guidance on the oil market, it was decided that from November 2022, OPEC and non OPEC oil producing countries would reduce the total output by 2 million barrels per day according to the output level required in August, and extend the production reduction agreement reached in 2020 by one year to the end of 2023. Previously, OPEC and non OPEC oil producing countries announced an average daily output increase of 100000 barrels in September, and then announced an average daily output reduction of 100000 barrels in October. Therefore, the total output in August was exactly the same as that in October.

In addition, the meeting also decided to hold the 34th ministerial meeting between OPEC and non OPEC oil producing countries on December 4 this year.

Market analysts generally believe that since several oil producing countries have failed to reach the capacity quota before, the actual production reduction effect will be less than 1 million barrels per day, while Saudi Arabia, the United Arab Emirates, Iraq and Kuwait are likely to become the countries with the largest actual production reduction.

In April 2020, OPEC and non OPEC oil producing countries reached an agreement on production reduction due to the impact of factors such as the outbreak of Neocrown Pneumonia on global crude oil demand. From May 1 of that year, the average daily output was reduced by 9.7 million barrels. By July 2021, OPEC and non OPEC oil producing countries decided to gradually increase their monthly output according to market conditions from August of that year.