In a recent online meeting, top OPEC+ ministers decided to keep the current oil output policy unchanged. This includes a plan to begin easing one layer of output cuts starting in October. However, they emphasized that this adjustment could be paused or reversed if necessary.
On Thursday, an online joint ministerial monitoring committee (JMMC) meeting took place with ministers from the Organization of the Petroleum Exporting Countries (OPEC) and their allies, led by Russia.
Currently, OPEC+ is reducing oil output by 5.86 million barrels per day, which is about 5.7% of global demand. These cuts have been implemented in phases since 2022 to support the market amid global demand uncertainties and increasing supply from outside the group.
After the meeting, OPEC+ stated that the recent 2.2 million barrels per day voluntary cut, which will last until September, could be paused or reversed based on market conditions.
Russian Deputy Prime Minister Alexander Novak commented that current oil prices are suitable for Russia and its budget, and he noted that supply and demand are balanced.
Algerian Energy Minister Mohamed Arkab mentioned that uncertainties in the oil market are likely to be resolved soon, provided the market remains well-supplied. He also forecasted that oil demand would continue to rise in the coming weeks.
In its June meeting, OPEC+ agreed to gradually phase out the 2.2 million barrels per day cut over a year, from October 2024 to September 2025. They also decided to extend earlier cuts of 3.66 million barrels per day until the end of 2025. Saudi Energy Minister Prince Abdulaziz bin Salman later indicated that OPEC+ might pause or reverse production increases if the market conditions are not favorable.
Thursday’s meeting also highlighted commitments from Iraq, Kazakhstan, and Russia to fully adhere to their pledged output cuts. These countries had previously submitted plans to make up for past overproduction. An OPEC+ source reported that the meeting’s chair stressed the importance of members adhering to their compensation plans.