OPEC+ sticks to production targets; agrees modest output rise

The OPEC+ meeting comes a day after the EU proposed a phased oil embargo on Russia (Shutterstock)
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Updated 06 May 2022
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OPEC+ sticks to production targets; agrees modest output rise

The Organization of Petroleum Exporting Countries and its allies agreed on Thursday to stick to plans for a gradual oil output increase — amounting to 432,000 barrels per day in June.

The decision was taken by all ministers before the formal start of the OPEC+ meeting, according to Reuters, despite the volatility of the markets caused by Russia's invasion of Ukraine and new COVID-19 lockdowns in China.

The decision was later confirmed by an official statement.

The OPEC+ meeting came a day after the EU proposed a phased oil embargo on Russia in its toughest measures yet to punish Moscow for its war in Ukraine.

Speaking ahead of the meeting, OPEC Secretary General Mohammad Barkindo said it was not possible for other producers to replace Russian supply.

“What is clear is that Russia’s oil and other liquids exports of more than 7 million bpd cannot be made up from elsewhere. The spare capacity just does not exist,” Barkindo said on Wednesday.

OPEC now expects 2022 world oil demand to expand by 3.67 million bpd in 2022, down 480,000 bpd from its previous forecast. Barkindo said the Chinese lockdowns were curbing demand.

“Higher prices could be around the corner,” said Bjornar Tonhaugen, head of oil markets research at Rystad Energy, according to AP. 

“The oil market has not fully priced in the potential of an EU oil embargo, so higher crude prices are to be expected in the summer months if it’s voted into law,” he added.




OPEC Secretary General Mohammad Barkindo (File/AFP)

Oil markets react

Oil prices extended on Thursday after the OPEC+ announcement. 

As of 4.30 p.m Saudi time, Brent crude is priced at $113.83 a barrel, while the West Texas Intermediate is at $111.33 per barrel.

US wants more

The US has repeatedly asked OPEC to raise production but the organization has resisted the calls amid strained relations with Washington.

The West’s energy watchdog, the International Energy Agency, agreed last month to release record volumes of stocks to help cool down prices and offset supply disruptions from Russia.


Read more: US Senate committee to consider bill pressuring OPEC oil group: Reuters


 


New Murabba seeks contractors for Mukaab Towers fit-outs: MEED

Updated 28 January 2026
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New Murabba seeks contractors for Mukaab Towers fit-outs: MEED

RIYADH: Saudi Arabia’s New Murabba Development Co., a wholly owned subsidiary of the Public Investment Fund, has issued a request for information to gauge the market for modular and offsite fit-out solutions for its flagship Mukaab development, MEED reported on Wednesday.

The RFI was released on Jan. 26, with submissions due by Feb. 11. NMDC has also scheduled a market engagement meeting during the first week of February to discuss potential solutions with prospective contractors.

Sources close to the project told MEED that NMDC is “seeking experienced suppliers and contractors to advise on the feasibility, constraints, and execution strategy for using non-load-bearing modular systems for the four corner towers framing the Mukaab structure.” The feedback gathered from these discussions will be incorporated into later design and procurement decisions.

The four towers — two residential (North and South) and two mixed-use (East and West) — are integral to the Mukaab’s architectural layout. Each tower is expected to rise approximately 375 meters and span over 80 stories. Key modular elements under consideration include bathroom pods, kitchen pods, dressing room modules, panelized steel partition systems, and other offsite-manufactured fit-out solutions.

Early works on the Mukaab were completed last year, with NMDC preparing to award the estimated $1 billion contract for the main raft works. This was highlighted in a presentation by NMDC’s chief project delivery officer on Sept. 9, 2025, during the Future Projects Forum in Riyadh.

Earlier this month, US-based Parsons Corp. was awarded a contract by NMDC to provide design and construction technical support. Parsons will act as the lead design consultant for infrastructure, delivering services covering public buildings, infrastructure, landscaping, and the public realm at New Murabba. The firm will also support the development of the project’s downtown experience, which spans 14 million sq. meters of residential, workplace, and entertainment space.

The Parsons contract follows NMDC’s October 2025 agreements with three other US-based engineering firms for design work across the development. New York-headquartered Kohn Pedersen Fox was appointed to lead early design for the first residential community, while Aecom and Jacobs were selected as lead design consultants for the Mukaab district.

In August 2025, NMDC signed a memorandum of understanding with Falcons Creative Group, another US-based firm, to develop the creative vision and immersive experiences for the Mukaab project. Meanwhile, Beijing-based China Harbour Engineering Co. completed the excavation works for the Mukaab, and UAE-headquartered HSSG Foundation Contracting executed the foundation works.