The OPEC+ Joint Ministerial Monitoring Committee (JMMC) concluded on Wednesday, with ministers refraining from any changes to production policy and maintaining plans to start ramping up production in December.
“JMMC emphasized that achieving full compliance and compensation is of critical importance. Furthermore, the Commission will continuously assess market conditions,” OPEC said in a statement after the meeting.
Ministers once again warned cartel members who continue to produce beyond their quotas.
Earlier on Wednesday, Saudi Energy Minister Prince Abdulaziz bin Salman warned OPEC+ ministers that oil prices would fluctuate if some member states continue to violate quota agreements. Could go down to $50 per barrel. The countries most commonly cited as violators of the production cuts agreement are Iraq and Kazakhstan. Both countries reported compliance in September, but official figures won’t be confirmed until next week. Reuters.
This is part of an escalation of Saudi threats to regain lost market share by raising price targets and shouldering the heaviest burden of cutting oil production. For more than a year, Saudi Arabia has gone beyond limits to limit supply to the market. Apart from the OPEC+ share of production cuts that have been in place since last summer, Saudi Arabia has also voluntarily withheld an additional 1 million barrels per day (bpd) from the market. The company is sticking strictly to its plan to produce “approximately 9 million barrels per day” and has consistently been in line with its oil production target over the past year.
OPEC+’s total production cuts currently amount to 5.86 million barrels per day.
OPEC+ plans to increase production by 180,000 barrels per day in December, lifting production cuts.
Written by Charles Kennedy, Oilprice.com
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