OPEC+ is set to raise its oil output goal by 100,000 barrels starting September.
OPEC and its allies had been increasing production by about 430,000-650,000 bpd a month.
They had, however, struggled to meet full targets as most members have exhausted their output potential following years of under-investment in new capacity.
The 31st OPEC and non-OPEC Ministerial Meeting was held via videoconference on August 3.
The meeting noted that chronic underinvestment in the oil sector has reduced excess capacities along the value chain (upstream/midstream/downstream).
The meeting highlighted with particular concern that insufficient investment into the upstream sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-participating non-OPEC oil-producing countries, some OPEC Member Countries and participating non-OPEC oil-producing countries.
It noted that preliminary data for OECD commercial oil stocks level stood at 2,712 mb in June 2022, which was 163 mb lower than the same time last year, and 236 mb below the 2015-2019 average, and that emergency oil stocks have reached their lowest levels in more than 30 years.
The meeting also noted that Declaration of Cooperation conformity has averaged 130% since May 2020, supported by voluntary contributions of some participating countries.
The conferees reiterated the critical importance of adhering to full conformity and to the compensation mechanism. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
Global oil demand has almost recovered to pre-pandemic levels, Russian Deputy Prime Minister Alexander Novak told state TV channel Rossiya-24 after OPEC+ members agreed to slightly increase production target next month.
He added that uncertainties remained in logistic chains and possible further spread of the COVID-19 pandemic and said that Russia and Saudi Arabia, two leading players in the oil output coordination deal, plan to hold an inter-governmental meeting in October.
US and Western sanctions on Russia have caused prices of all types of energy to soar, resulting in inflation at multi-decade highs and central bank interest rate hikes.
US inflation hit 40-year highs this year and threatens US President Joe Biden’s approval ratings unless gasoline prices fall.
By September, OPEC+ was meant to have wound down all of the record production cuts it implemented in 2020 after the pandemic slashed demand.
By June, however, OPEC+ was almost 3 million barrels per day below its quotas as sanctions on some members and low investment by others crippled its ability to boost output.