A mini OPEC+ ministerial meeting scheduled for next month is expected to keep the group’s oil production policy unchanged, according to three sources who spoke to Reuters.
The Organization of the Petroleum Exporting Countries and its allies, led by Russia—collectively known as OPEC+—will convene an online Joint Ministerial Monitoring Committee (JMMC) meeting on August 1. The meeting will assess current market conditions.
One of the sources, who requested anonymity, described the meeting as a “pulse check” on market health.
As of Thursday, oil prices were around $85 per barrel, supported by conflicts in the Middle East and decreasing inventories. However, concerns about prolonged high interest rates and demand have limited price gains this year.
OPEC+ is currently implementing a reduction in output by 5.86 million barrels per day (bpd), which represents about 5.7% of global demand. This reduction is part of a series of measures agreed upon since late 2022.
At their last meeting in June, OPEC+ decided to extend a reduction of 3.66 million bpd until the end of 2025 and to prolong the most recent cut—2.2 million bpd by eight members—by an additional three months, extending it to September 2024.
The group plans to gradually unwind the 2.2 million bpd cuts over a year, from October 2024 to September 2025.
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Russian Deputy Prime Minister Alexander Novak, when asked this week about the market’s ability to absorb the additional volume from October, did not rule out adjustments to the agreement if necessary. “We have the option to increase output, and we will continuously evaluate the situation,” Novak said.
In June, Saudi Energy Minister Prince Abdulaziz bin Salman indicated that OPEC+ might pause or reverse production increases if the market shows signs of weakness.
The JMMC typically meets every two months and can make policy recommendations, which are then reviewed and approved in a full OPEC+ ministerial meeting.
Oil prices continued to rise on Thursday, supported by a larger-than-expected decline in U.S. crude stocks. Brent futures increased by 41 cents, or 0.5%, reaching $85.49 per barrel by 0819 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose by 69 cents, or 0.8%, to $83.54 per barrel, with both benchmarks having gained in the previous session.
U.S. crude inventories fell by 4.9 million barrels last week, according to data from the U.S. Energy Information Administration released on Wednesday.