OPEC+ maintains current output policy

The Organisation of the Petroleum Exporting Countries (OPEC+) maintained its output policy at yesterday's meeting, with members deciding not to change any production levels.

PHOTO: An oil pump jack with the OPEC flag in the background. Getty Images

Brent’s price remained steady after the OPEC+ group of producers decided to leave output levels unchanged at its Joint Ministerial Monitoring Committee (JMMC) meeting yesterday.

The move by the Saudi Arabia-led coalition was highly anticipated, according to several oil market analysts.

“A meeting of the OPEC/non-OPEC Joint Ministerial Monitoring Committee on Wednesday recommended no change in production policy, as expected,” VANDA Insights’ founder and analyst Vandana Hari remarked.

The oil producers’ group said that its members, including Iraq, Kazakhstan, and Russia, have submitted compensation plans to the OPEC Secretariat for the overproduction in the previous months, including August.

The OPEC+ group “focused on member non-compliance to the current supply agreement,” in yesterday’s meeting, ANZ Bank’s senior commodity strategist said.

Earlier this year, the Vienna-headquartered group said that it would start phasing out the 2.2 million b/d production cut in December, depending on favourable conditions in the global oil market.

This move is expected to add around 180,000 b/d per month. “It [OPEC] has several more weeks to decide whether to proceed with the plan,” Hynes added.

The group’s next JMMC meeting is scheduled for 1 December.

By Aparupa Mazumder

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