KUALA LUMPUR (Aug 4): The Organization of the Petroleum Exporting Countries (OPEC) said non-OPEC participating country Malaysia will raise its monthly crude oil output to 595,000 barrels in September 2022 from 594,000 barrels in August 2021 at time when insufficient investment into the upstream oil and gas sector will impact the availability of adequate crude oil supply in a timely manner to meet growing demand for the commodity beyond 2023.

In a statement on Wednesday (Aug 3), OPEC said participating countries decided to "adjust upward the (collective) production level for OPEC and non-OPEC participating countries by 0.1 mb/d (100,000 barrels/day) for the month of September 2022".

OPEC had issued its statement in conjunction with the 31st OPEC and non-OPEC Ministerial Meeting, which was held virtually on Wednesday.

According to OPEC, the meeting noted the dynamic and rapidly evolving oil market fundamentals, which necessitate continuous assessment of market conditions.

OPEC said the meeting noted that the severely limited availability of excess oil output capacity necessitates the utilisation of such capacity with great caution in response to severe oil supply disruptions.

"The meeting noted that chronic underinvestment in the oil sector has reduced excess capacities along the value chain (upstream/midstream/downstream).

"The meeting highlighted with particular concern that insufficient investment into the upstream sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-participating non-OPEC oil-producing countries, some OPEC member countries and participating non-OPEC oil-producing countries.

"It (the meeting) noted that preliminary data for OECD (Organisation for Economic Co-operation and Development) commercial oil stocks level stood at 2,712 mb (2.71 billion barrels) in June 2022, which was 163 mb (163 million barrels) lower than the same time last year, and 236 mb (236 million barrels) below the 2015-2019 average, and that emergency oil stocks have reached their lowest levels in more than 30 years.

"The meeting also noted that Declaration of Cooperation conformity has averaged 130% since May 2020, supported by voluntary contributions of some participating countries," OPEC said.

According to OPEC's website, its 13 member countries are Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela.

Online reports indicated that Malaysia was among the 10 countries that joined OPEC in 2016 to form the group known as non-OPEC participating countries, which include Azerbaijan, Bahrain, Brunei, Kazakhstan, Mexico, Oman, Russia, South Sudan, and Sudan.

Collectively, OPEC's 13 member countries and the 10 non-OPEC participating nations are known as OPEC Plus.

At the time of writing, Malaysian national oil company Petroliam Nasional Bhd (Petronas) has not issued a statement in response to OPEC's statement in conjuction with the 31st OPEC and non-OPEC Ministerial Meeting.