2023-10-04 20:03:58
A committee affiliated with the oil-exporting OPEC Plus alliance recommended on Wednesday maintaining the current plan to reduce production, which was reinforced by Saudi Arabia and Russia reducing their oil production, with the aim of supporting black gold prices.
Announcement
Members of the Joint Ministerial Follow-up Committee affirmed their “commitment” to the plan, indicating their “readiness… to take additional measures” following evaluating the situation in the market, according to what was stated in a statement published following a meeting held via video conference.
They also praised the “efforts of Saudi Arabia,” which is leading the coalition and announced a voluntary reduction in its production by one million barrels per day, which began in July.
The Saudi Ministry of Energy confirmed in a statement the extension of this measure until the end of December.
The ministry indicated that the Kingdom’s production during the last three months of the year will approach 9 million barrels per day.
In Moscow, Russian Deputy Prime Minister Alexander Novak said on the Russian government’s Telegram account that his country will extend the reduction in oil shipments to global markets at a rate of 300,000 barrels per day until the end of December 2023.
Similar to what was stated in the Saudi statement, Novak added, “A market assessment will be conducted next month to determine whether to further reduce or increase oil production.”
The reference crude price increased by regarding 5%
These decisions come as a continuation of the reductions approved since the beginning of May and implemented by nine countries, including Riyadh, Moscow, Baghdad and Dubai, until the end of 2024, with a total of 1.6 million barrels per day.
Since the committee meeting in early August, the price of the reference crude oil has risen by regarding 5% and the main US crude, West Texas Intermediate, by more than 7%.
Brent crude touched the symbolic threshold of $100 per barrel at the end of September, before falling with WTI in recent days.
The members of the committee will meet once more on November 26 to evaluate the situation before the ministerial meeting of the thirteen oil exporting countries (OPEC), headed by Riyadh, and their ten partners, headed by Moscow, in Vienna, where the organization’s headquarters are.
The Joint Ministerial Follow-up Committee does not have the authority to make decisions regarding increasing or decreasing quotas, but it discusses market conditions and makes recommendations that serve as the basis for actions taken by ministers.
Additional sources • AFP
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