OPEC+ Maintains Output Policy as Oil Prices Soar
During the 53rd meeting of the Joint Ministerial Monitoring Committee held via videoconference, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, decided to keep its output policy unchanged as oil prices reached their highest point in five months.
The meeting focused on reviewing crude oil production data for January and February 2024, the current market situation, and the implementation of output cuts by member countries.
This year has seen a significant rally in oil prices due to tighter supply, attacks on Russian energy infrastructure, and conflicts in the Middle East. Brent crude traded above $89 a barrel on Wednesday, marking its highest level since late October 2023.
OPEC+ members, particularly Saudi Arabia and Russia, had previously agreed to extend voluntary output cuts of 2.2 million barrels per day until the end of June to provide support to the market.
Russian Deputy Prime Minister Alexander Novak announced that Russia would focus on reducing oil output rather than exports in the second quarter to align with production cuts by other OPEC+ members.
In a statement following the meeting, OPEC+ expressed its approval of Russia’s decision on production cuts and outlined plans for countries with overproduced volumes to submit compensation plans by April 30.
Iraq has also committed to lowering exports to meet its OPEC target, with a pledge to reduce shipments by 130,000 barrels per day from February. However, more adjustments are needed in the coming months to fulfill this commitment.
The committee will continue to monitor production adjustments decided in previous meetings and voluntary cuts announced by some OPEC and non-OPEC countries. The next meeting of the JMMC is scheduled for June 1.