OPEC+ announces oil output cut by 2 mln bpd

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OPEC+ decided to reduce crude oil output by two million barrels per day (bpd), amid concerns about the global economic outlook.

In a statement, the group announced its decision to adjust downward the overall production by two million bpd compared to the levels of last August, starting November 2022, for OPEC and non-OPEC member countries.

This came in light of the uncertainty about the global economic and oil market outlooks. This is in addition to the need to enhance the long-term guidance for the oil market, according to the statement.

The group also announced adjusting the frequency of the monthly meetings of the Joint Ministerial Monitoring Committee (JMMC) to become every two months. The ministerial meeting of OPEC and non-OPEC nations will be held every six months.

The group of major oil producers also agreed to extend the compensation period to March 31, 2022, stressing the importance of adhering to full compliance.

Meanwhile, the 34th ministerial meeting of OPEC+ members will be held on Dec. 31, 2023.

The group also agreed to extend the duration of the declaration of cooperation between OPEC and non-member producers until December 31, 2023.