Crude oil prices dropped as the Organisation of the Petroleum Exporting Countries and its allies known as OPEC+ agreed to continue with the current output plan.
Brent crude futures traded at $81.88 a barrel while US West Texas Intermediate (WTI) crude futures shed 0.17 per cent to $80.29 a barrel at the end of the meeting.
Three weeks ago, Brent crude topped $85 per barrel — the highest level since October 2018.
The outcome of today’s meeting is against the United States call for more oil production to crash the rise in global oil prices.
With this decision, the group will continue its gradual increase in oil production by 400,000 barrels per day each month.
“The meeting reaffirmed the continued commitment of the Participating Countries in the Declaration of Cooperation (DoC) to ensure a stable and a balanced oil market, the efficient and secure supply to consumers and to provide clarity to the market at times when other parts of the energy complex outside the boundaries of oil markets are experiencing extreme volatility and instability, and to continue to adopt a proactive and transparent approach which has provided stability to oil markets,” OPEC said in a statement.
“In view of current oil market fundamentals and the consensus on its outlook, the meeting reaffirmed the decision of the 10th OPEC and non-OPEC Ministerial Meeting on April 12, 2020, and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on July 18 2021.
“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.4 mb/d for December 2021, as per the attached schedule.
“Reiterate the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of December 2021. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.”
The group said it will hold the 23rd OPEC and non-OPEC Ministerial Meeting on December 2, 2021.