OPEC+ Monitoring Committee To Assess The Situation On Oil Market
(MENAFN- AzerNews)
By Alimat Aliyeva
The OPEC+ Ministerial Monitoring Committee will meet on Thursday
in a videoconference format to analyze the current situation in the
oil market, Azernews reports.
This time, only a meeting of the monitoring committee is
scheduled. At such meetings, the state of the oil market is usually
analyzed and a recommendation for further OPEC+ oil production
policy is determined. At the same time, the committee may, if
necessary, request a general ministerial meeting of OPEC+ at any
time. Meetings of the monitoring committee are now held every two
months. The last such meeting was held on the same day as the
meeting of all the ministers of the alliance - on June 2.
At a meeting in June, OPEC+ extended the parameters of the deal
with minor changes until the end of 2025. Only one country, the
UAE, will increase the permitted level of oil production next year
by 300 thousand barrels per day (b/d), but not immediately, but
gradually - from January to the end of September 2025.
The remaining decisions concerned voluntary reductions, which
have been adhered to by several OPEC+ countries since the first
quarter of 2024, including Russia and Saudi Arabia. Thus, the
"volunteers" extended production cuts totaling 2.2 million b/d for
the third quarter. And starting from October 2024, these countries
will gradually restore production until the end of September 2025.
In addition, the same OPEC+ countries from the spring of 2023 to
the end of 2025 voluntarily reduce oil production in total by 1.66
million b/d.
At the same time, by the end of September 2025, three countries
that had previously undersupplied oil production - Russia, Iraq and
Kazakhstan - should gradually compensate for these volumes. The
total amount of their "debt" to reduce production is 2.284 million
b/d. Of these, most of them are in Iraq - 1,184 million b/d. Russia
will have to gradually reduce 480 thousand b/d, Kazakhstan - 620
thousand b/d.
As the Reuters news agency notes, citing sources in the OPEC+
delegations, the alliance's monitoring committee is unlikely to
make changes to any parameters of the deal and obligations for
voluntary reductions.
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