VIENNA, Austria – An OPEC+ panel recommended Wednesday that the oil cartel keep its current output reduction strategy unchanged after heavyweights Saudi Arabia and Russia vowed to maintain their cuts to prop up prices.
Oil prices recovered in recent months and approached $100 per barrel last week as top producers Saudi Arabia and Russia have taken millions of barrels off the market.
Crude prices have eased in more recent days, however, as markets worry over a slowing economy and interest rates remaining high for longer in the United States and Europe.
In a statement following a virtual meeting, OPEC+ said its Joint Ministerial Monitoring Committee (JMMC) “reaffirmed the commitment of its member countries” to maintain its production reduction strategy valid until the end of 2024.
The panel added that it stands “ready to take additional measures at any time” depending on market conditions.
The JMMC also praised the “efforts… of Saudi Arabia” to voluntarily reduce its production by one million barrels per day (bpd) since July.
The Saudi Ministry of Energy confirmed that the voluntary cut would continue until the end of 2023.
It added that the kingdom’s production would amount to about nine million bpd in November and December.
Russia will maintain its export cuts of about 300,000 bpd until December, Russian deputy prime minister Alexander Novak said in the government’s Telegram channel.
Both Riyadh and Moscow stressed that they would review their cuts next month to decide whether to deepen them or increase production.
The next JMMC meeting is set for November 26 ahead of the ministerial meeting, according to a statement from the group.
The JMMC has no decision-making power but discusses market conditions and makes recommendations, which are then formally discussed and decided at the organisation’s ministerial meetings.