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An OPEC+ ministerial panel meeting is set to take place, with experts predicting no changes to policy. This decision will pave the way for a gradual increase in production starting from December. Ministers from OPEC and allies like Russia will convene online for the joint ministerial monitoring committee (JMMC) meeting at 1200 GMT.
Experts suggest that the meeting will focus on reaffirming the importance of member countries adhering to their production targets. The international oil market saw prices dip below $70 a barrel in September, but a recent rally has pushed prices above $75 this week. Concerns over potential disruptions in crude output from the Middle East following Iran’s military attack on Israel have contributed to the price increase.
OPEC+ has been implementing output cuts totaling 5.86 million barrels per day, representing about 5.7% of global demand. The group plans to introduce a 180,000 bpd production increase in December as part of the phased unwinding of voluntary cuts agreed upon in 2022. Compliance with production targets, especially by countries like Iraq and Kazakhstan, will be closely monitored in the meeting and the following weeks. These countries have committed to compensation cuts to offset previous over-production.
Failure to comply with production targets could lead to a faster rollback of cuts by major producers like Saudi Arabia. Analysts warn that a lack of compliance may prompt a quicker end to voluntary cuts. The JMMC, consisting of oil ministers from key producing countries, typically meets every two months to discuss policy changes.
Overall, the outcome of the OPEC+ meeting will have a significant impact on oil prices and global supply. Investors and consumers should closely monitor the decisions made during the meeting, as they could influence energy markets and potentially affect their finances.