In its latest Joint Ministerial Monitoring Committee (JMMC), the OPEC+ group has decided to maintain the production of crude oil at its current levels.
With oil prices having rallied over the previous month, the meeting was expected to be brief and conclude there was no apparent need for further intervention. The panel reaffirmed the June decision to extend the current cuts to the end of next year.
The day before the meeting, Saudi Arabia announced that its voluntary production cut of a million barrels per day (bpd) would be extended by another month into September, while Russia also announced that it would continue its voluntary reduction in exports, although only by 300,000 bpd in September compared to 500,000 bpd in August. The panel acknowledged the contribution these steps had made to stabilising the oil market.
While the JMMC is not due to meet again until October, OPEC said in statement that the panel could make interventions sooner if needed:
“The committee will continue to closely assess market conditions noting the willingness of the DoC countries to address market developments and stand ready to take additional measures at any time, building on the strong cohesion of OPEC and participating non-OPEC oil-producing countries.”
Oil majors like Chevron and ExxonMobil, the makers of the Texaco and Mobil metalworking and lubricant range, are based mostly in non-OPEC+ countries, so they are not bound to any decisions made by the group. Nevertheless, the OPEC+ countries account for about 40% of global crude oil production, so their decisions can have a significant effect on the oil market.
