OPEC+ alliance postpones decision on output levels, noting necessity for assessment
Date
1/29/2024 4:17:55 AM
(MENAFN) Sources within the OPEC+ alliance have disclosed that member states are seeking additional time to assess the impacts of the recent production cuts initiated at the beginning of January, slated to continue until the end of the first quarter. According to reports from Bloomberg, it appears unlikely that decisions to alter production levels will be made during the upcoming OPEC+ Ministerial Monitoring Committee meeting scheduled for the following Thursday.
In November's OPEC+ meeting, Saudi Arabia extended its voluntary production cuts, accompanied by an additional reduction in Russian exports and adjustments to quotas for certain African countries. These measures collectively amount to a total cut of 2.2 million barrels per day until the conclusion of the first quarter. The extension was aimed at supporting efforts to stabilize the oil market amidst global economic uncertainties.
Alexander Dyukov, the head of Russian company Gazprom Neft, expressed a view that additional cuts in oil supplies from OPEC+ might not be necessary. He pointed to the achieved balance in the oil market attributed to the ongoing supply cuts by the coalition, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
The complexity of evaluating the effects of production cuts and achieving market stability is underscored by the challenges faced by the OPEC+ alliance. Careful coordination and a thorough assessment of the evolving market dynamics are deemed essential before any new measures are considered. This highlights the deliberative approach being taken by OPEC+ members as they navigate the intricate landscape of global oil markets.
MENAFN29012024000045015682ID1107779919
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.