Russia and other non-members of Organisation of Petroleum Exporting Countries (OPEC) have agreed to join OPEC in raising oil production output by one million barrels per day (mb/d) from July 2018.
The Minister of Energy and Industry of United Arab Emirates (UAE) Mr Suhail Al Mazrouei, made the decision known at a news conference after the 4th OPEC and non-OPEC Ministerial Meeting in Vienna on Saturday.
The Minister of Energy of the Russian Federation, Mr Alexander Novak as well as the Secretary-General of OPEC, Mr Muhammad Barkindo was present at the briefing.
Al Mazrouei, said that OPEC and non-OPEC would raise supply by returning to 100 percent compliance with previously agreed output cuts, after months of underproduction.
He said that OPEC and non-OPEC combined would pump roughly an extra 1 million barrels per day, with OPEC accounting for most of the additional supply.
“Recalling the 171st OPEC Conference Resolution reached on 30 November 2016 for a production adjustment of 1.2 million barrels a day for OPEC Member Countries.
This is with the understanding reached with key non-OPEC participating countries, including The Russian Federation. to contribute a production adjustment of 0.6 mb/d.
“Recalling the Declaration of Cooperation (DOC) reached on December 10, 2016; and noting that countries participating in the DOC have exceeded the required level of conformity that had reached 147 per cent in May 2018.
“Accordingly, the 4th OPEC and non-OPEC Ministerial Meeting hereby decided that countries will strive to adhere to the overall conformity level, voluntarily adjusted to 100 per cent as of 1 July 2018 for the remaining duration of the DOC, ” he said.
Al Mazrouei said that the the Joint Ministerial Monitoring Committe of the groups would ensure that members adhere to the production decisions.
The UAE Minister said the next OPEC and non-OPEC Ministerial Meeting would take place in Vienna, Austria, on December 4, 2018.
Meanwhile, the Minister of Energy of the Russian Federation, Mr Alexander Novak, reaffirmed the continued commitment of the participating oil producing countries to a stable market.
He said the increase in production was of mutual interest of producing nations, and would ensure sufficient supply to consumers.