Adedapo Adesanya
By Adedapo Adesanya
The ministerial panel of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) on Wednesday made no changes to the group’s oil output policy.
This expected move came after Saudi Arabia and Russia said they would keep voluntary supply cuts in place to support the market.
Ministers from the 23-member OPEC+ held an online meeting on Wednesday. The panel, named the Joint Ministerial Monitoring Committee (JMMC), can call for a full OPEC+ meeting if warranted.
“The committee will continue to closely assess market conditions,” an OPEC statement issued after the meeting said, adding that the panel recognised and acknowledged the Saudi and Russian cuts.
The move carried out by the group has helped prop up oil prices which neared $100 for the first time since 2022. Although prices have come under pressure in recent days from concerns that interest rates may remain persistently high and from weaker economic growth, the role of the cuts is heavy on the commodity.
Also on Wednesday, Saudi Arabia said it would continue with a voluntary cut of 1 million barrels per day until the end of 2023, while Russia said it would keep a 300,000 barrels per day voluntary export curb until the end of December.
Russian Deputy Prime Minister Alexander Novak said the joint cuts by Saudi Arabia and Russia had helped to balance the global oil market.
“We are also fulfilling our obligations in full,” he said.
Saudi Energy Minister Prince Abdulaziz bin Salman, who chairs the JMMC, last month said OPEC+ cuts were needed to stabilise the market, and prices were not being targeted.
The Saudi Arabian and Russian supply cuts, which are around 1.16 million barrels per day, are on top of earlier curbs announced in late 2022.
The next JMMC meeting is on November 26, the statement said, the same day as the next scheduled full meeting of OPEC+ to decide policy.
