Emmanuel Addeh in Abuja
The Organisation of Petroleum Exporting Countries (OPEC) and its allies knows as OPEC+ is unlikely to tweak its current oil output policy when a panel meets tomorrow (Wednesday), Reuters has reported, as tighter supplies and rising demand drive an oil price rally.
Ministers from the OPEC and allies led by Russia, known as OPEC+, meet on October 4. The panel, called the Joint Ministerial Monitoring Committee (JMMC) can call for a full OPEC+ meeting if warranted.
Oil has jumped towards $100 a barrel for Brent crude , the highest since 2022, as tighter supply, due partly to OPEC+ output cuts and rising demand, outweighs concern about stubborn inflation and weaker economic growth.
Four OPEC+ sources who declined to be named said the committee would probably not make any changes to existing policy during Wednesday’s online meeting.
“Nothing has been discussed. It will probably be a normal meeting with emphasis on the OPEC+ agreement,” one of the sources said.
In focus will be an expected update on plans by Saudi Arabia and Russia on their voluntary cuts. On September 5, they extended cuts amounting to 1.3 million barrels per day to the end of the year and said they would review the cut decisions monthly.
With oil rallying, some analysts have cited an increasing probability the Saudi voluntary cuts will be reduced. Others expect the curbs to be extended into 2024.
