The OPEC+ alliance announced today, Wednesday, that the current policy of reducing oil production remains unchanged, in an attempt to maintain the stability of the global supply of crude oil. In market trading, oil continued its rise, touching the level of $90 per barrel.
The coalition stated, in a statement issued by the Organization of Petroleum Exporting Countries (OPEC), that it maintained the current production reduction policy, which has been continuing since November 2022, in addition to the voluntary reduction by some countries, which began in July 2023.
The OPEC Plus Ministerial Committee said in the statement that it reviewed crude oil production data for the months of January and February 2024, and noted the “high” commitment of OPEC and non-OPEC countries to production quantities.
The coalition, which includes OPEC and allies from outside it, held an online meeting today, Wednesday, of the Joint Ministerial Monitoring Committee, to study market developments and members’ commitment to production cuts.
The size of the mandatory reduction in crude oil by members is approximately 3.66 million barrels per day, and will continue until the end of this year, while the voluntary reduction amounts are 2.2 million barrels per day, and will continue until next June.
The Committee welcomed Iraq and Kazakhstan’s pledge to achieve full compliance and compensate for surplus production. It also welcomed Russia’s announcement that its voluntary adjustments in the second quarter of 2024 will be based on production rather than exports.
The participating countries, which have excess production during the months of January, February and March 2024, will submit their detailed compensation plans to the OPEC Secretariat by April 30.
Russia and Iraq
After the meeting, Russian Deputy Prime Minister Alexander Novak said today that his country is fulfilling all its obligations to reduce oil supplies within the framework of the OPEC Plus alliance agreement.
The meeting stressed the need for some countries to strengthen their commitment to production cuts, a decision that pushed global crude prices to their highest levels in 5 months at about $90 per barrel.
For his part, the official spokesman for the Iraqi Oil Ministry, Assem Jihad, confirmed that OPEC Plus members agreed to keep the current crude oil production policy unchanged until the middle of this year.
Jihad said, in a press statement, that “Iraqi Oil Minister Hayyan Abdul Ghani participated in the ministerial meeting to monitor production, which was held today, Wednesday, via closed-circuit television, and it was decided to recommend maintaining the production levels that were approved in the previous meeting until next June without change.” “. He stated that the member states agreed to hold the next meeting on the first of next June.
Oil prices continued to rise, supported by OPEC Plus’ commitment to cuts, with the continuation of the Gaza and Ukraine wars (Al Jazeera)
Oil touches $90
Oil prices continued their gains today, Wednesday, with OPEC Plus pledging to commit to reducing production, continued supply shortages, Ukrainian attacks on energy infrastructure in Russia, and the Israeli aggression on the Gaza Strip, which caused tension in the oil-rich Middle East and in the Red Sea.
Brent crude futures contracts were trading at $89.67 per barrel today, the highest level since late last October, and US West Texas Intermediate crude futures for delivery next May rose 73 cents to $85.88 per barrel.
2024-04-03 19:25:26
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