OPEC+ retains oil production cut policy maintain price stability

The OPEC+ alliance yesterday announced that it was keeping the current oil production cut policy unchanged, in an attempt to maintain global stability in crude oil supplies and ramp up prices.

In a statement issued at the end of the 53rd Meeting of the Joint Ministerial Monitoring Committee, OPEC stated that it will maintain the current production cut policy, which has been ongoing since November 2022, while welcoming addition to voluntary cuts by some countries that started in July 2023.

The ministerial committee of OPEC+ stated in the announcement that it has reviewed crude oil production data for January and February 2024 and noted the “high” compliance of OPEC member countries and non-OPEC countries with production quantities.

The mandatory crude oil production cut for members is around 3.66 million barrels per day, continuing until the end of this year, while voluntary cuts amount to 2.2 million barrels per day, continuing until June next year.

READ ALSO:Nigeria’s crude oil production rose to 1.4mb/d in December — OPEC

The committee also welcomed Iraq and Kazakhstan’s commitment to full compliance and compensating for excess production, as well as Russia’s announcement that its voluntary adjustments in the second quarter of 2024 will be based on production rather than exports.

The participating countries with excess production in January, February and March 2024 will submit their detailed compensation plans to the OPEC Secretariat by 30 April.

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 noted 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.

By: Babajide Okeowo

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