As the world’s best investment manager and financial market journalist, I bring you the latest insights on the OPEC+ panel meeting happening this week. Despite recent declines in oil prices, sources from the producer group indicate that no changes are expected to the current production cut deal.
Top ministers from OPEC and allies, including Russia, will convene for an online joint ministerial monitoring committee meeting on Thursday at 10:00 GMT. Sources suggest that there will be no new developments in terms of limiting OPEC+ production.
Oil prices have dropped by about 9% this month, trading below $80 a barrel on Tuesday, due to diminishing geopolitical risks and concerns about Chinese demand. OPEC’s headquarters in Vienna and the Saudi government’s communications office have not commented on the matter.
Currently, OPEC+ is reducing output by 5.86 million barrels per day, equivalent to 5.7% of global demand, in a phased approach agreed upon since late 2022. The group decided in June to extend cuts of 3.66 million bpd until the end of 2025 and to prolong the most recent 2.2 million bpd cut by eight members until the end of September 2024.
Plans are in place to gradually ease out the 2.2 million bpd cuts over the next year, from October 2024 to September 2025. The JMMC, consisting of oil ministers from Saudi Arabia, Russia, and other key producers, typically meets every two months to discuss policy changes.
In conclusion, the OPEC+ panel is expected to maintain the current production cut deal at this week’s meeting. This decision could impact global oil prices and market dynamics, so investors and individuals should stay informed on developments in the energy sector for potential financial implications.