The Organisation of Petroleum Exporting Countries and its allies known as OPEC+ have decided to adjust their overall production upwards by 0.4 million barrels per day (mbd).

The decision was taken at the end of the 19th OPEC and non-OPEC ministerial meeting on Sunday.

A statement issued after the meeting said the upward adjustment would take effect from August.

It said given the current oil market fundamentals and the consensus on its outlook, the participating countries reaffirmed the framework of the Declaration of Cooperation signed on December 10, 2016, further endorsed in subsequent meetings, including on April 12, 2020.

It said it decided to extend the decision of the 10th OPEC and non-OPEC Ministerial Meeting (April 2020) until December 31, 2022.

It also said they decided to adjust upwards the overall production by 0.4 mb/d monthly starting from August 2021 up until the 5.8 mbd production adjustment is phased out, and to assess market developments and participating countries’ performance in December 2021.

It added that the meeting would continue to adhere to the mechanism to hold monthly OPEC and non-OPEC ministerial meetings for the entire duration of the Declaration of Cooperation.

This, it said, would help to assess market conditions and decide on production level adjustments for the following month, adding that it targeted to end the production adjustment by the end of September 2022 subject to market conditions.

It further said it adjusted the baseline for the calculations of the production adjustments according to the table effective May 1, 2022.

It reiterated the critical importance of adhering to full conformity and taking advantage of the extension of the compensation period until the end of September 2021.

“Compensation plans should be submitted following the statement of the 15th OPEC and non-OPEC Ministerial Meeting,” it said, noting that the 20th OPEC and non-OPEC ministerial meeting would hold on September 1.