The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are unlikely to make any changes to their current production policy at the upcoming Joint Ministerial Monitoring Committee (JMMC) meeting on August 1st. Despite recent oil price declines, sources within OPEC+ indicate that the group is committed to its existing production cuts.
These cuts include a 3.66 million barrels per day (bpd) reduction extending until the end of 2025 and a 2.2 million bpd cut by eight members lasting until the end of September 2024. OPEC+ plans to gradually phase out the 2.2 million bpd cut over a year, starting in October 2024.
Advertisement
Hey there! Want to support us? If you’re planning on shopping on Amazon, please consider using amzn.to/4bPDFNL. It doesn’t cost you anything extra, but helps us keep the lights on. Thanks for your support!
The group appears unfazed by recent oil price drops, attributing them to dissipating geopolitical risks and concerns about Chinese demand. OPEC+ seems to be confident in its ability to manage the market and doesn’t see the need for immediate intervention.
The JMMC meeting is expected to reaffirm existing plans rather than introducing significant changes. The focus is likely to remain on the gradual unwinding of the 2.2 million bpd cut over the next year, with the group continuing to monitor market conditions and adjust its policy as needed.