OPEC+ agrees to raise oil output by 500,000 bpd from January

MOSCOW, Dec 4 (PRIME) -- The OPEC plus deal members have agreed to start raising production by 500,000 barrels per day in January and by up to 500,000 barrels per day later, depending on market conditions, a source in a delegation told PRIME late on Thursday and the Energy Ministry of Kazakhstan confirmed.

"The coordinated decision is production increase by 500,000 barrels per day from January. The meetings will be held monthly in order to assess the market conditions," the source said. "The growth will later depend on market conditions but will not exceed 500,000 barrels per day."  

According to the source, OPEC plus did not set the time to change this production increase mode.

The mechanism for the underperforming countries was prolonged till April, as follows from a draft statement of the deal participants seen by PRIME. "The members also agreed to prolong the compensatory mechanism… for a period starting from January and ending in March 2021 in order to ensure full compensation of overproduction for all sides who signed the declaration," the statement read.

Besides monthly meetings, the OPEC plus participants plan to hold a general meeting of all states of the alliance in Vienna on June 25, 2021. 

Russian Deputy Prime Minister Alexander Novak said that Russia fulfills the deal close to 100%, and November was no exclusion. He confirmed an intent of OPEC plus to return to a 2 million barrels per day output gradually with 500,000 barrel per day upward or downward steps.

"During the analysis, we will take into account both positive and negative factors, and the direction may vary. We presume that the adjustment, each change cannot exceed 500,000 barrels per day monthly," Novak said.

He said that Russia plans to raise production by 125,000 barrels per day in January, and te companies are ready. 

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