OPEC+ Leaves Oil Output Levels Unchanged

• The JMMC of OPEC+ held a short meeting in which they affirmed the current oil production levels of the group, with no recommendations for changes to the output.
• The meeting was preceded by announcements from Saudi Arabia and Russia of their intentions to extend their voluntary cut in oil exports into September, supporting the stability of the oil market.
• While the OPEC+ panel sees no need for further market intervention at present, they noted their readiness to intervene if necessary, with the next meeting scheduled for October 4, 2023.

The Joint Ministerial Monitoring Committee (JMMC) of OPEC+ affirmed on Friday the current levels of oil production of the group and didn’t make any recommendation to change the output at this time. 

In a very short meeting, as expected, the JMMC panel, which regularly discusses the situation on the market and the need for OPEC+ intervention, rubberstamped the OPEC+ decisions from June 4, when the current cuts – initially set for May through December 2023 – were extended to the end of 2024.    

The Friday meeting, scheduled for months, was preceded by a Saudi announcement on Thursday that the Kingdom would extend its unilateral voluntary cut of 1 million barrels per day (bpd) into September. 

Russia, the leader of the non-OPEC producers in the OPEC+ group, also announced an extension in its export cuts into September, although the pledged cut will be lower than in August.  

Russia will cut oil exports by 300,000 bpd in September, Deputy Prime Minister Alexander Novak said on Thursday. Russia has said it would reduce its August oil exports by 500,000 bpd. 

Today’s meeting of the OPEC+ panel, agreed there was no need for further market intervention at present, as widely expected. But the panel noted that it could intervene if necessary. 

“The committee will continue to closely assess market conditions noting the willingness of the DoC countries to address market developments and stand ready to take additional measures at any time, building on the strong cohesion of OPEC and participating non-OPEC oil-producing countries,” OPEC said in a statement after the short panel meeting. 

The panel also “reiterated its appreciation” to Saudi Arabia for the extension of its unilateral cut into September, “aimed at supporting the stability of the oil market,” and acknowledged Russia’s commitment to cut oil exports in September by 300,000 bpd. 

The next meeting of the JMMC is scheduled to take place on October 4, 2023.   

By Tsvetana Paraskova for Oilprice.com

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