Legal analysis: According to news from Oil Price Network on July 19, OPEC+ managed to reach an agreement on production cuts on Sunday. Starting from August, the oil market will add an additional 400,000 barrels of crude oil supply per day, although some such as the United Arab Emirates There are conflicts among member states insisting on higher benchmarks.

The organization will increase oil production by another 400,000 barrels per day in September and will increase it monthly thereafter until production levels are fully restored. If the production increase goes as planned, full production will be restored by September 2022, but the agreement has been officially extended to December 2022. OPEC+ will still continue to hold monthly meetings and will review market conditions in December and may adjust production levels if deemed necessary.

OPEC+’s 19th OPEC and non-OPEC ministerial meeting was announced on Saturday. The meeting took place on Sunday and despite heated debate between the UAE and Saudi Arabia over the previous benchmark cap of 3.168 million barrels per day set by the UAE, an agreement was reached quickly. While the UAE insists on a higher benchmark of 3.8 million barrels per day - the basis on which each member establishes production quotas - Saudi Arabia's more cautious approach to output levels has stalled OPEC talks.

But Saudi Arabia and the United Arab Emirates reached a compromise last week that finally paved the way for an OPEC+ deal.

The final result is to adjust the production adjustment baseline of five member countries, including the United Arab Emirates (3.5 million barrels/day), Iraq (4.803 million barrels/day), and Kuwait (2.959 million barrels/day) , Saudi Arabia and Russia (11.5 million barrels/day each).

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(1) To join multilateral treaties and important agreements within the scope listed in paragraph 2 of Article 7 of this Law, the Ministry of Foreign Affairs or the After review by the relevant departments of the State Council together with the Ministry of Foreign Affairs, they will make recommendations and submit them to the State Council for review; the State Council will submit the decision to the Standing Committee of the National People's Congress to make a decision to join. The instrument of accession shall be signed by the Minister of Foreign Affairs, and the specific procedures shall be handled by the Ministry of Foreign Affairs;

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