How do OPEC+ oil companies unwind their production cuts?

Eight members of the OPEC+ oil producing countries have begun to unwind some of their output restrictions. They are looking to slowly add back around 2.2.million barrels per day.

In an online meeting held on Saturday, the eight participants agreed to increase production by 411,000 bpd during July.

Here are the details of the most recent decisions made by OPEC+. This group includes members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, such as Russia.

Who are the EIGHT?

Algeria, Iraqi, Kazakhstan, Kuwait Oman, Saudi Arabia, and the United Arab Emirates.

When did the monthly increase begin?

They began increasing their production in April, and have so far increased it by almost 1.4 million bpd or about 1.4% of the daily global demand. They still have about 800,000 BPD of planned increases to implement.

What about the larger group?

On May 28, all 22 OPEC+ member countries met online and no changes were made to the group's curbs.

CURRENT OPEC+ CUTTING

OPEC+ cuts its output collectively by 5.3 million bpd, or 5% of the global demand.

There are three parts to this:

1. All OPEC+ countries are expected to produce two million bpd until 2026.

2. The eight members are expected to make voluntary cuts of 1.65 million bpd until 2026.

3. The eight members have now eliminated 2.2 million bpd in voluntary reductions.

TIMELINE

December: The group of eight made a number of decisions in December to speed up the return of barrels to the market, which was originally scheduled to last until the end of September 2026. United Arab Emirates also received a higher production quote in December, which will increase its output by 300,000. bpd until September 2026.

March 3: They have agreed to a 138,000 bpd increase in April

They surprised the market on April 3, by increasing the May production to 411,000 bpd, compared to a planned 135,000.

May 3: They announced a 411,000 BPD increase for June

May 31: They agreed to another 411,000 bpd for July. This brings the total up to 1.37million bpd and leaves about 830,000 to be unwind. The eight have reported that they are considering unwinding by the end October.

(source: Reuters)