Ministers from major producers in the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, met online on Thursday to discuss fundamentals in the market.
The committee, called the Joint Ministerial Monitoring Committee, can call a full OPEC+ meeting or make recommendations on production policy.
OPEC said in a statement issued after the meeting, “The Joint Ministerial Monitoring Committee reviewed crude oil production data for the months of November and December 2023 and noted the great commitment of countries participating in OPEC and outside it.”
Two OPEC+ sources told Reuters that the alliance will consider in early March whether to extend the voluntary oil production cuts of 2.2 million barrels per day, which are scheduled to expire at the end of the current quarter of the year.
Saudi Arabia alone participates in nearly half of these cuts, at a rate of one million barrels per day.
If these cuts are cancelled, OPEC+ will begin returning 2.2 million barrels per day to the market as of the beginning of April, while maintaining the previously agreed upon production cuts of 3.66 million barrels per day.
Riyadh said the cuts may continue after the first quarter if necessary. Previous decisions to extend the voluntary cuts were taken at least a month before their implementation.
In a surprise announcement this week, the Saudi government directed the state oil company Aramco to halt its plan to expand its oil capacity and target a maximum sustainable production capacity of 12 million barrels per day, that is, one million barrels per day less than the goal announced in 2020.
Brent crude prices have been hovering above $80 per barrel since January 24, supported by geopolitical tensions in the Middle East.
The Joint Ministerial Monitoring Committee usually meets every two months and includes major producers within OPEC+, including Saudi Arabia and Russia.
The statement stated that the committee will meet on April 3rd.
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