OPEC maintains output policy at latest panel meeting

The oil producers’ coalition decided to maintain its total output level and supply cut pledges at today's Joint Ministerial Monitoring Committee (JMMC) meeting.

PHOTO: Flags of OPEC and its members. Getty Images

The Organization of the Petroleum Exporting Countries and allies (OPEC+) was expected to leave its ongoing 2.2 million b/d production cut largely unchanged, according to oil market analysts.

Oil prices have been on a bullish run this year because of tighter supply in the market from voluntary output cuts and geopolitical conflicts, with Brent futures surpassing $89/bbl ahead of OPEC’s meeting today.

“The geopolitical backdrop isn’t expected to prompt OPEC to change its supply policy when it meets later today,” Daniel Hynes, ANZ Bank’s senior commodity strategist said earlier today.

The alliance acknowledged Russia’s announcement to change its total output quota to call it production cuts instead of export bans.

OPEC+ supply cuts were “likely to be maintained,” analysts from Saxo Bank’s APAC strategy team remarked.

The group’s total oil output fell by 50,000 b/d month-on-month to 26.42 million bbls in March, due to a reduction in production from Iraq and Nigeria, Reuters reported citing sources.

The next OPEC+ meeting is scheduled for 1 June.

By Aparupa Mazumder 

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