Statement Released Following 2nd Smallest Production Hike In OPEC History

OPEC releases statement following today's JMMC and OPEC+ meetings in Vienna.

• Full statement: https://www.opec.org/opec_web/en/press_room/6984.htm
• "The Meeting noted that the severely limited availability of excess capacity necessitates utilizing it with great caution in response to severe supply disruptions."
• "...in view of the latest oil market fundamentals, the Participating Countries decided to [...] Adjust upward the production level [...] by 0.1 mb/d for the month of September 2022. [...] Hold the 32nd OPEC and non-OPEC Ministerial Meeting on 5 September 2022."
• Javier Blas at Bloomberg:
  • "...The increase (the 2nd smallest hike in the cartel's history, only behind one in 1986) comes despite President Biden's trip to Saudi Arabia. The OPEC+ 100k b/d output hike compares to an expectation in Washington only a few days ago that Saudi Arabia would lead the cartel to boost production by 400-500k b/d. For weeks, US officials have said they expected positive steps at the Aug 3 OPEC+ meeting. The OPEC+ increase isn't real, either, as most member are already pumping at their maximum capacity. Only Saudi Arabia and the UAE can increase. If they adhere to their quotas, the 100,000 b/d translates in an extra 26,000 b/d for Riyadh and 8,000 b/d for Abu Dhabi. Let's put the 26,000 b/d Saudi increase into context: the kingdom's quota for Sept is 11.006m b/d. That's ~7,650 barrels per minute..."