OPEC+ agreed in April two years ago to implement a large-scale production cut of 9.7 million barrels per day, supporting international crude oil prices.
Subsequently, in July last year, it was decided to gradually increase crude oil production, on the grounds that global demand for crude oil, which had temporarily decreased due to the effects of the novel coronavirus, is on the rise.
From August last year, the production volume will be increased by about 400,000 barrels per day each month, and from May to June this year, the increase will be extended to 432,000 barrels per day.
Furthermore, in response to requests from Europe and the United States, which are suffering from inflation due to soaring energy prices, the increase in production was brought to 648,000 barrels/day in July and August.
On the other hand, crude oil prices are falling on the view that the global economy will slow down due to rapid interest rate hikes in Europe and the US and the continuation of China’s “zero corona” policy and demand for crude oil will be sluggish.
In response to US President Biden’s visit to the Middle East in July and urging to increase crude oil production, OPEC Plus agreed to increase production by 100,000 barrels per day, albeit slightly, in September, but has reduced production since October. , we implemented a production cut of 2 million barrels per day, which is the largest production cut since 2020.
