A panel of OPEC+ endorsed the group’s current production policy at a meeting on Wednesday, leaving output cuts agreed last year in place amid hopes of higher Chinese demand and uncertain prospects for Russian supply.
Ministers from OPEC+ countries – members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, including the Russia — met in a virtual meeting that OPEC+ sources said lasted less than 30 minutes.
Ministers on the panel, called the Joint Ministerial Monitoring Committee (JMMC), reviewed the production figures and “reaffirmed their commitment” to the OPEC+ agreement that runs until the end of 2023, OPEC said in a statement after the meeting.
The message was that OPEC+ is staying the course until the end of the deal and the group was in “mute mode”, a source said.
The ministers did not discuss the outlook for Chinese demand and supply from Russia, other OPEC+ sources said.
As of February 5th, exports of oil products from Russia will be subject to a ban on European Union and the price ceiling of the G7.
OPEC+ has agreed to cut its production target by 2 million barrels per day (bpd), about 2% of world demand, from November last year to the end of 2023 to support the market.
Crude oil fell at the start of the year but recovered, supported by hopes that Chinese demand will pick up, although fears of a global recession remain a drag on prices.
Source: Moneytimes
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