– Top OPEC+ ministers to meet online on Aug. 1
– Brent crude prices have lost about 9% in July
– OPEC+ plans to raise output from October
Moscow/London — An OPEC+ panel is unlikely this week to make any changes to its current deal to cut production and to start unwinding some cuts from October, despite recent sharp declines in oil prices, five sources from the producer group told Reuters.
Top ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as the group is known, will hold an online joint ministerial monitoring committee meeting (JMMC) on Thursday at 10:00 GMT.
“I think it is unlikely that we will see a new change or development in Thursday’s meeting, especially to limit more OPEC+ production,” one of the sources said, declining to be identified.
Oil has fallen about 9% so far this month, trading below $80 a barrel on Tuesday, waning on dissipating geopolitical risks and concern about the strength of Chinese demand.
The Saudi government’s communications office did not immediately return a request for comment. OPEC’s headquarters in Vienna did not immediately respond to a request for comment.
OPEC+ is currently cutting output by a total of 5.86 million barrels per day (bpd), or about 5.7% of global demand, in a series of steps agreed since late 2022.
At its last meeting in June, the group agreed to extend cuts of 3.66 million bpd by a year until the end of 2025 and to prolong the most recent layer of cuts – a 2.2 million bpd cut by eight members – by three months until the end of September 2024.
OPEC+ plans to gradually phase out the cuts of 2.2 million bpd over the course of a year from October 2024 to September 2025.
The JMMC, which groups the oil ministers from Saudi Arabia, Russia and other leading producers, usually meets every two months and can make recommendations to change policy.
*Alex Lawler, Olesya Astakhova, Ahmad Ghaddar & Maha El Dahan, Yousef Saba, editing: David Evans – Reuters
This article was originally posted at sweetcrudereports.com
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