OPEC+ expected to maintain production policy amid rising oil prices

OPEC+ expected to maintain production policy amid rising oil prices

Shafaq News / Sources in the OPEC+ alliance suggested, on Tuesday, that the alliance is likely to continue its production policy without making any changes during the upcoming meeting.

Reuters quoted the sources as saying that it is unlikely for the Joint Ministerial Monitoring Committee, affiliated with the group, to recommend any changes in the oil production policy during its meeting on Wednesday, especially as oil prices have reached their highest levels this year.

The alliance, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, is scheduled to hold an online meeting of the Joint Ministerial Monitoring Committee on Wednesday to discuss market developments and members' compliance with production cuts, which have already been extended.

Oil prices have risen this year due to supply shortages and attacks on energy infrastructure in Russia and the war in the Middle East.

Brent crude reached $89 per barrel on Tuesday, up from $77 at the end of 2023.

Two sources, speaking on condition of anonymity as they were not authorized to speak publicly, expect a smooth meeting and pointed to the previous decision to extend production cuts.

The meeting is scheduled to take place at 11:00 GMT.

Last month, OPEC+ members, led by Saudi Arabia and Russia, agreed to extend voluntary production cuts by 2.2 million barrels per day to support the market.

The cuts are voluntary as they are not evenly distributed among all group members.

Russian Deputy Prime Minister Alexander Novak announced last Friday that Russia had decided to focus on cutting oil production rather than exports in the second quarter in order to evenly distribute production cuts with other OPEC+ members.

When the voluntary cut decision ends at the end of June, total cuts from OPEC+ are expected to decrease to 3.66 million barrels per day as agreed upon in previous steps initiated in 2022.

The Joint Ministerial Monitoring Committee includes leading OPEC+ countries such as Saudi Arabia, Russia, and the UAE.

The committee usually meets every two months and can make recommendations for policy changes, which can then be discussed and ratified in a full ministerial meeting involving all members.

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