QNA & Agencies
London
The OPEC+ Joint Ministerial Committee (JMC) confirmed no change to oil production policy, stressing the need to achieve full compliance with production quotas and plans to compensate foroverproduction.
The Organization of the Petroleum Exporting Countries (OPEC) stated in a statement today that it noted countries that had not fully complied with and compensated for their overproduction, stressing the importance of achieving full compliance and compensation, and calling on some OPEC+ countries to make additional cuts to compensate for overproduction.
The committee, which includes oil ministers from major oil-producing countries, typically meets every two months and can make recommendations for policy changes. The next meeting of the JMC is scheduled for May 28. OPEC+ also intends to meet with all its members on the same day to determine production policy.
Eight OPEC+ members agreed last Thursday to accelerate the plan to phase out oil production cuts by increasing production by 411,000 barrels per day in May, instead of 135,000. This decision pushed oil prices to continue their sharp declines. Two sources said on Saturday no new decisions were expected at the meeting.
Brent crude prices closed 7 percent lower at $65.58 a barrel on Friday, their lowest since August 2021, pressured by the OPEC+ decision and trade war fears after US President Donald Trump’s sweeping tariff announcement this week.
The May hike is the next increment of a plan agreed by Russia, Saudi Arabia, UAE, Kuwait, Iraq, Algeria, Kazakhstan and Oman to gradually unwind their most recent output cut of 2.2 million bpd, which came into effect this month.
OPEC+ also has 3.65 million bpd of other output cuts in place until the end of next year to support the market.
