When the OPEC+ panel convenes next Wednesday, they are not anticipated to adjust the present oil production policy, according to four sources familiar with the matter who spoke to Reuters.
This comes amidst a surge in oil prices driven by constricted supply and growing demand. On October 4, ministers from the Organization of the Petroleum Exporting Countries (OPEC) and their allies, predominantly led by Russia and collectively referred to as OPEC+, will gather.
The Joint Ministerial Monitoring Committee, which is this panel’s official name, has the authority to summon a comprehensive OPEC+ meeting if necessary.
Brent crude oil prices are nearing $100 a barrel, marking their highest level since 2022. This surge is attributed to a combination of tighter supplies, partly due to OPEC+ production reductions, and increased demand. These factors seem to overshadow worries about persistent inflation and a slowing economy.
According to four anonymous OPEC+ sources, it is unlikely that the committee will modify the current policy during the online meeting set for Wednesday.
One of these sources mentioned, “There haven’t been any discussions. The meeting will likely focus on the OPEC+ agreement as usual.”
The OPEC office in Vienna, Austria, and the Saudi Energy Ministry have not yet replied to comments requested on Friday.
The spotlight will be on the anticipated updates regarding voluntary cut plans by Saudi Arabia and Russia. On September 5, they prolonged their reductions, which total 1.3 million barrels daily, until year-end and confirmed that they will assess these decisions on a monthly basis.
Given the surge in oil prices, some experts believe there’s a growing chance that the voluntary cuts by Saudi Arabia may be lessened. Meanwhile, some predict that these restrictions will continue into 2024.
