VIENNA, Austria (October 4, 2021)—The 21st OPEC and non-OPEC Ministerial Meeting, held via videoconference, concluded on Monday, 4 October 2021.
Global oil supply deficit.. last year in almost all countries exceeded predictions. Most countries bought enough oil when the price was low.. and stored it for the future. More or less, some industrialist will benefit and the consumer will pay higher gas prices to heat their homes and for transportation cost. Food prices, clothing, goods and services are also expected to increase due to the increase of gas prices. Farmers, sending livestock and producing agricultural products that yield food, feed, energy and fiber will also be impacted by high cost of oil. The supplies have fallen quicker than demand, but not the case in consumer and farm goods–the necessities. As people return to their normal lives–the demand will increase, but the supply will not keep up with the demand–and will become extremely costly, aka, inflation.
In view of current oil market fundamentals and the consensus on its outlook, OPEC and participating non-OPEC oil producing countries:
- Reaffirmed the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on the 18 July 2021.
- Reconfirmed 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 the month of November 2021, as per the attached schedule.
- Reiterated 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.
- Will hold the 22nd OPEC and non-OPEC Ministerial Meeting on 4 November 2021.
Source: OPEC contributed to the article.