OPEC+ ministers have decided to keep the alliance’s current oil production policy unchanged, affirming their plan to gradually roll back production cuts starting in October 2024. The decision, made during an online meeting of the Joint Ministerial Monitoring Committee, includes the possibility of temporarily suspending or reversing the planned production increase if market conditions require it.
The current production plan, approved in June, outlines a phased elimination of 2.2 million barrels per day in production cuts over a year, from October 2024 to September 2025. This move follows an agreement to extend previous cuts of 3.66 million barrels per day until the end of 2025.
OPEC+ stated that the gradual easing of voluntary production cuts could be postponed or reversed depending on market dynamics. This flexibility allows the group to respond to global demand and supply fluctuations.
Oil prices have declined from a peak of over $92 per barrel in April to below $82, pressured by strong demand but recently supported by rising geopolitical tensions in the Middle East. Russian Deputy Prime Minister Alexander Novak remarked that the current oil price level suits Russia and other market participants, indicating a balance between supply and demand.
Algerian Energy Minister Mohamed Arkab noted that doubts about the oil market’s fundamentals are unlikely to persist as the market remains adequately supplied. He also predicted that oil demand will follow an upward trend in the coming weeks.
The Joint Ministerial Monitoring Committee, which includes oil ministers from Saudi Arabia, Russia, and other major producers, meets every two months to assess market conditions and recommend to the wider OPEC+ group. The committee’s next meeting is scheduled for October 2.
