2024-04-03T15:06:15+00:00
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/ The OPEC+ Joint Ministerial Committee welcomed, on Wednesday, the pledges of Iraq and Kazakhstan to fully comply and compensate for any increase in production, while keeping its oil production policy unchanged.
The Joint Ministerial Committee of the alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies, led by Russia, held a meeting today via the Internet to study market developments and members’ commitment to production cuts.
Oil prices have risen this year, supported by tight supplies, attacks on energy infrastructure in Russia and war in the Middle East.
Brent crude was trading at nearly $90 a barrel on Wednesday, the highest level since late October 2023, after the meeting ended.
OPEC+ members, led by Saudi Arabia and Russia, agreed last month to extend voluntary production cuts by 2.2 million barrels per day until the end of next June to support the market.
In a statement after the meeting, the OPEC+ alliance pointed to the “significant compliance” of members with the oil production cuts they pledged, but said that some countries promised to strengthen their commitment and report on their progress.
The statement said that the committee welcomed Iraq and Kazakhstan’s pledges to fully comply, as well as to compensate for any increase in production, and Russia’s announcement that its cuts in the second quarter will depend on production, not exports.
The statement added, “Participating countries that have excess production quantities during the months of January, February, and March 2024 will submit detailed compensation plans to the OPEC Secretariat by April 30, 2024.”
Data from Standard & Poor’s Commodity Insights, known as Platts, showed that the alliance exceeded production by a net 275,000 barrels per day last January, and 175,000 barrels per day last February.
Platts is one of the secondary sources used by OPEC+ to evaluate the production of alliance members.
The survey stated that Iraq, Gabon and Kazakhstan were the main members who produced more than their quotas during the two months.
When the voluntary pledges expire at the end of next June, the total OPEC+ production cuts will return to 3.66 million barrels per day, as agreed upon in previous steps beginning in 2022.
The ministerial committee includes the leading OPEC+ countries, including Saudi Arabia, Russia and the UAE.
The committee is scheduled to hold its next meeting on June 1, which is the same day as the next full OPEC+ meeting to decide on production policy.