VIENNA: The Joint Ministerial Monitoring Committee (JMMC) of OPEC+, during a virtual meeting, recommended on Wednesday that the oil cartel should retain its existing output reduction strategy to sustain the cuts and bolster oil prices.
This decision comes as oil prices, which surged to nearly $100 per barrel in recent months, experienced a slight decline amid concerns about a slowing global economy and prolonged high-interest rates in the United States and Europe.
In an official statement, OPEC+ affirmed the commitment of its member countries to uphold the production reduction strategy until the end of 2024. The committee emphasized its readiness to take additional measures as necessary, contingent upon prevailing market conditions.
Notably, the JMMC praised the voluntary efforts of Saudi Arabia, which has reduced its production by one million barrels per day (bpd) since July. The Saudi Ministry of Energy confirmed that this voluntary cut would continue until the end of 2023, with the Kingdom’s production estimated to be around nine million bpd in November and December.
Russia also committed to maintaining its export cuts of approximately 300,000 bpd until December, as stated by Russian Deputy Prime Minister Alexander Novak on the government’s Telegram channel. Both Riyadh and Moscow indicated their intention to review these cuts next month, with discussions focusing on the possibility of deepening the reductions or increasing production levels.
OPEC+ Aims to Stabilize Global Oil Markets
The next JMMC meeting is scheduled for November 26, preceding the organization’s ministerial meeting. It is important to note that while the JMMC can make recommendations and discuss market conditions, the final decisions are formally deliberated and decided at OPEC+ ministerial meetings.
This move reflects OPEC+’s ongoing efforts to stabilize global oil markets and respond proactively to market dynamics, ensuring a balance between supply and demand while supporting stable oil prices amidst economic uncertainties.
