The Ministerial monitoring committee of OPEC+ member countries is set to convene on Friday via videoconference to evaluate the state of the global oil market.
This session will exclusively feature the OPEC+ monitoring committee, which typically assesses the ongoing oil market conditions and provides recommendations on the alliance's oil production policy. However, the committee retains the flexibility to call for a comprehensive OPEC+ meeting if circumstances necessitate. These ministerial monitoring gatherings now take place every two months.
Sources within OPEC+ delegations, as reported by Reuters, indicated that this time the monitoring committee is unlikely to propose any modifications to the alliance's current decisions.
During the preceding meeting, OPEC+ nations agreed upon production parameters through the conclusion of 2024. Starting from next year, the reduction in production relative to the agreed quotas from October 2022 is estimated to be 1.272 million barrels per day (bpd), according to TASS calculations. Additionally, several OPEC+ countries, including Russia and Saudi Arabia, will collectively undertake a voluntary production decrease of 1.66 million bpd until the close of 2024.
On August 3, both Russia and Saudi Arabia announced the extension of supplementary measures to stabilize the market. Saudi Arabia will persist in voluntarily reducing oil production by 1 million bpd in September, mirroring the rates for July and August. Meanwhile, Russia will continue to curtail oil exports in September, albeit at a reduced rate of 300 thousand bpd, compared to the 500 thousand bpd reduction in August.
The meeting of the OPEC+ Ministerial monitoring committee is scheduled for 15:00 Moscow time. The general ministerial meeting is slated for November 26, 2023.
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Based on materials from TASS