Russia will be allowed to produce 9.913 million bpd from November.
The majority of market participants had expected a decision to allow an increase of 800,000 bpd in view of the sharp rise in gas and coal prices, which has unleashed an energy crisis in China and intensified demand for oil.
“The decision by OPEC+ about the need to keep to its previously established plan will allow for the further stabilisation of markets,” Russian Deputy Prime Minister Alexander Novak told Rossiya 24 television.
“In my opinion, it will amount to a more balanced moment to enable us to continue efforts to normalise the state of the markets.”
“In August, the implementation of the OPEC+ agreement stood at 119%. That’s the highest level over the course of the cooperation agreement between OPEC and non-OPEC countries. It means that all countries are observing it at quite a high level and that allows for the market to be balanced, allows for a more or less stable situation to take hold on the market as we see, and for a predictable way forward.”
Analysts from the OPEC+ Technical Committee had earlier concluded that even if the situation with demand for oil worsened in 2021, there would still be a shortage on markets should OPEC+ countries proceed with agreed increases in production.
Ministers also agreed to extend until December 2021 a plan for compensation by countries failing to meet production reduction targets. The next OPEC+ meeting was scheduled for 4th November.