Sources: OPEC+ alliance may not change production policy at its next meeting

Five sources in the OPEC+ alliance confirmed to Reuters that the group’s Joint Ministerial Monitoring Committee is unlikely to recommend any change in oil production policy during its meeting on Wednesday, coinciding with oil prices reaching their highest levels this year.

According to Reuters, two sources, who requested that their names not be published because they are not allowed to speak publicly, said they expected a smooth meeting, and referred to the previous decision to extend production cuts.

The coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, is holding an online meeting of the Joint Ministerial Monitoring Committee on Wednesday to study market developments and members’ commitment to the production cuts they have already agreed to extend.

Oil prices have risen this year, supported by supply shortages, attacks on energy infrastructure in Russia and war in the Middle East, and Brent crude oil reached $89 a barrel on Tuesday, up from $77 at the end of 2023.

OPEC+ members, led by Saudi Arabia and Russia, agreed last month to extend voluntary production cuts by 2.2 million barrels per day to support the market. The discounts are voluntary as they are not divided among all group members.

When the voluntary reduction decision ends at the end of June, the total cuts from OPEC+ are scheduled to decrease to 3.66 million barrels per day as agreed upon in previous steps that began in 2022.