LONDON: Key ministers of the OPEC+ alliance are set to meet on Thursday to discuss output policy, with sources indicating that the group is unlikely to alter its current agreement to cut production. The plan to gradually unwind some of these cuts starting in October is also expected to remain unchanged, despite recent sharp declines in oil prices.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia—collectively known as OPEC+—will convene an online Joint Ministerial Monitoring Committee (JMMC) meeting on Thursday at 1000 GMT.
According to five OPEC+ sources, no adjustments to the existing production plan are anticipated. Oil prices have dropped from a 2024 high of over $92 per barrel in April to around $81 on Wednesday, driven by concerns over demand. However, prices have found some support this week due to escalating tensions in the Middle East.
Currently, OPEC+ is implementing a total production cut of 5.86 million barrels per day (bpd), which accounts for approximately 5.7% of global demand. These cuts have been made in several stages since late 2022.
In its previous meeting in June, OPEC+ agreed to extend cuts of 3.66 million bpd by a year, continuing until the end of 2025. Additionally, the most recent layer of cuts—amounting to 2.2 million bpd by eight members—was extended by three months, with these reductions set to remain in place until the end of September 2024.
The current strategy also outlines a gradual phasing out of the 2.2 million bpd cuts over the course of a year, from October 2024 to September 2025.
The JMMC, which includes oil ministers from Saudi Arabia, Russia, and other major producers, typically meets every two months and can provide recommendations to the broader OPEC+ group.
