BAKU, Azerbaijan, Apr.6
By Leman Zeynalova – Trend:
OPEC+ crude oil production is expected to stand at 41.628 million barrels per day in 2022, as compared to 37.515 million barrels per day as of 2021, Trend reports with reference to the US JP Morgan Bank.
OPEC+ quarterly crude production in 2022 is estimated as follows: 40.380 million bpd in Q1, 41.256 million bpd in Q2, 42.214 million bpd in Q3 and 42.633 million bpd in Q4.
JP Morgan’s report says that OPEC+ will produce 40.172 million bpd in January 2022, 40.427 million bpd in February, 40.546 million bpd in March, 40.685 million bpd in April, 41.267 million bpd in May, 41.814 million bpd in June, 42.111 million bpd in July, 42.170 million bpd in August, 42.366 million bpd in September, 42.470 million bpd in October, 42.710 million bpd in November and 42.721 million bpd in December.
OPEC+ agreed to ease production cuts by 350,000 bpd in both May and June, and an additional 450,000 bpd in July, despite the fact that the re-imposition of nationwide lockdowns in continental Europe will weigh on demand. According to the post-meeting press statement, the decision was justified due to ‘the volatility observed in recent weeks’. Pressure by the US may also have been a factor as US Energy Secretary, Jennifer Granholm, tweeted that in her phone call with the Saudi Arabian Energy Minister, she had highlighted the ‘importance of international cooperation to ensure affordable and reliable sources of energy for consumers’. However, Saudi’s Energy Minister vigorously denied in the press conference that US pressure had played a role.
Meanwhile, Saudi Arabia has stated that it would gradually taper its voluntary cuts over the May-July period. This was broadly anticipated as domestic demand rises in the second and third quarters as oil is used in power generation for cooling.
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