OPEC+ Meeting Overview

LONDON (Reuters) – Key ministers from OPEC+ will meet on Thursday to decide on output policy. Sources expect no changes to the current production cut deal, despite recent declines in oil prices.

Meeting Details

The joint ministerial monitoring committee (JMMC) will hold an online meeting at 1000 GMT. Five sources indicate that it’s unlikely to alter the current plan.

Oil Price Trend

Oil prices dropped significantly from a 2024 high above $92 per barrel in April to around $81. This decline is due to concerns about demand strength, although recent Middle Eastern tensions have provided some support.

OPEC+ Production Cuts

Currently, OPEC+ is cutting output by a total of 5.86 million barrels per day, approximately 5.7% of global demand. In a meeting held in June, the group extended production cuts of 3.66 million bpd until the end of 2025 and prolonged an additional 2.2 million bpd cut by three months until September 2024.

The gradual phase-out of 2.2 million bpd cuts is planned from October 2024 to September 2025.

The JMMC, comprised of oil ministers from Saudi Arabia, Russia, and other key producers, typically meets every two months and can make recommendations to the broader OPEC+ group.