Opec+, the oil exporters alliance headed by Saudi Arabia and Russia, stays the course for its planned supply increase for September, to bring 400,000 barrels per day back to the market.
The group did not acquiesce to pressures from the White House, which last month called on producers to bring more supply to the markets.
Opec+ has begun to taper a historic production restriction pact and plans to bring 2 million bpd back to the markets by the end of the year.
Oil prices fell in response to more crude output hitting the markets in the near future. Brent, the international benchmark, was down 0.45 per cent to trade at $71.31 per barrel at 8.07pm UAE time. West Texas Intermediate, which tracks US crude grades, was down 0.57 per cent at $68.11 per barrel.
"While the effects of the Covid-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD [Organisation for Economic Co-operation and Development] stocks continue to fall as the recovery accelerates," Opec said in a communique after a meeting on Wednesday.
The group will convene its next ministerial meeting on October 4.
Conformity with output curbs reached 109 per cent in July, Opec said.
The group also extended the timeline for countries that produced over their quota to make compensatory cuts until the end of December. The producers have been asked to submit their plans to make additional cuts by September 17.
"This was a rare easy meeting for Opec+ that did not even last half an hour. No surprises today, as Opec+ ratified a plan to move forward with 400,000 bpd production increases," said Edward Moya, senior market analyst for the Americas, at Oanda.
"The oil market will stay in deficit for the rest of the year with 2021 oil demand growth at 6 million bpd."
Opec's joint ministerial monitoring committee expects a surplus of 2.5 million bpd in 2022, which is expected to prevent a surge in oil prices.
Alexander Novak, Russia’s deputy prime minister and top Opec negotiator, said ahead of the Opec+ meeting that the country, the largest producer within the alliance, could raise its supply over its quota limits.
"The battle for market share among Opec+ will intensify but the posturing has already started," Mr Moya said.
