The Joint Ministerial Monitoring Committee (JMMC) of the Organisation of Petroleum Exporting Countries (OPEC) and its allies led by the Russian Federation has decided to keep oil production quota unchanged until its next meeting in June.
OPEC together with its newfound friends in a statement following the meeting appreciated the commitment of its members towards the declaration of cooperation.
The committee appreciated commitments from Iraq and Kazakhstan to fully comply and offset any excess production, along with Russia’s declaration that its reductions in the second quarter will be calculated based on production levels rather than exports.
It further stated that countries who produced above their production quota in the first quarter of 2024 should provide details of compensation plan by the 30th of April, 2024.
Following the conclusion of the meeting, Brent crude soared to around $90 on Wednesday, reaching its peak since late October 2023.
This year, oil prices have surged due to reduced supply, assaults on Russian energy facilities, and conflict in the Middle East.
In March, OPEC + led by Saudi Arabia and Russia decided to extend their production cuts for the next three months- far into the second quarter.
For Russia, its production cuts amount to 471,000 barrels per day (bpd) while the Kingdom of Saudi Arabia reduced production by 1million barrels going as far back as July 2023.
