OPEC+ Express Support for Saudi Arabia, Maintains Strategy for Oil Market Stability

The OPEC+ panel assessing the oil market concluded a brief meeting on Wednesday without suggesting any changes to the present oil production strategy, only hours after Saudi Arabia and Russia stated in separate announcements that they will stick to their respective voluntary supply cutbacks by the end of the year.
The OPEC+ group’s Joint Ministerial Monitoring Committee (JMMC), which met via videoconference today, reaffirmed the commitment of several OPEC+ members, thanked Saudi Arabia and Russia for their voluntary supply cuts, and “expressed its full recognition and support for the Kingdom of Saudi Arabia’s efforts aimed at supporting the stability of the oil market.”
The committee will also “stand ready to take additional measures at any time,” according to an OPEC statement.
The following JMMC meeting is slated for November 26, 2023.
The two main OPEC+ partners, Saudi Arabia and Russia, said earlier today that they would maintain their respective production and export restrictions in November and review their choices the following month to see whether the restrictions should be widened or relaxed.
Early on Wednesday, Saudi Arabia announced it would continue reducing its crude oil production by an additional 1 million barrels per day (bpd) in November and December. Separately, Russia announced it would keep reducing its oil exports by 300,000 bpd through the end of the year.
“This voluntary cut decision will be reviewed next month to consider deepening the cut or increasing production,” Saudi Arabia said.
Both Saudi Arabia and Russia reiterated today that the ongoing oil supply cuts are aimed at keeping “stability and balance on the oil markets.”
After two weeks of gains, oil prices fell this week as a result of a general market sell-off and concerns about rising interest rates for the foreseeable future.
Early on Wednesday, Brent Crude prices fell below $90 per barrel to $89.50, while WTI Crude prices were at $87.60 per barrel.

Source: allnewsng.com

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