Eurasia Press & News
The oil cartel explained that the JMMC reviewed the crude oil production data for January and February 2024 and noted the high conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).
The Organisation of Petroleum Exporting Countries (OPEC) and its allies on Wednesday agreed to keep oil output policy unchanged until its next meeting in June.
OPEC disclosed this at its 53rd Joint Ministerial Monitoring Committee (JMMC) meeting, a statement released by the organisation said.
The oil cartel explained that the JMMC reviewed the crude oil production data for January and February 2024 and noted the high conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).
It said the committee welcomed the Republic of Iraq and the Republic of Kazakhstan’s pledge to achieve full conformity as well as compensate for overproduction. The committee also welcomed the announcement by the Russian Federation that its voluntary adjustments in the second quarter of 2024 will be based on production instead of exports.
“Participating countries with outstanding overproduced volumes for the months of January, February and March 2024 will submit their detailed compensation plans to the OPEC Secretariat by 30 April 2024.
“The Committee will continue to monitor the conformity of the production adjustments decided upon at the 35th ONOMM held on 4 June 2023, and the additional voluntary production adjustments announced by some participating OPEC and participating non-OPEC countries in April 2023 and the subsequent adjustments in November 2023 and February 2024.
“The Committee will continue to closely assess market conditions and note the willingness of the DoC countries to address market developments and their readiness to take additional measures at any time building on the strong cohesion between OPEC and participating non-OPEC oil-producing countries,” the oil cartel said.
Background
OPEC and its allies had, in October 2022, agreed to cut oil output by 2 million barrels per day in November, the deepest cut by OPEC+ since the 2020 COVID pandemic.
The decision came despite pressure from the United States and others advocating that the group increase its output.
In April 2023, OPEC said it would start “a voluntary reduction” of 1.66 million barrels per day in its production of crude oil alongside other members of OPEC.
The cuts were to start in May and last through the end of the year, an official of the Saudi Ministry of Energy was quoted as saying by the Saudi state-run news agency, SPA.
The cut is in addition to the reduction announced by OPEC+ in October 2022, according to SPA.
Again in June last year, OPEC said it would extend the cut until 2024.
It noted that the decision was taken in light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market and to provide long-term guidance for the market.
Earlier in October last year, the OPEC+ Joint Ministerial Monitoring Committee (JMMC), kept the group’s output policy unchanged.
Last November, OPEC and its allies agreed to cut monthly oil output by an additional 1 million barrels per day starting in 2024.
The oil cartel had earlier in March announced an extension of additional voluntary cuts of 2.2 million barrels per day for the second quarter of 2024.
The OPEC Secretariat noted that the announcements of several OPEC+ countries extending additional voluntary cuts of 2.2 million barrels per day, aimed at supporting the stability and balance of oil markets.
