VIENNA, Austria – A committee of major oil producers recommended on Friday to maintain the current output strategy of the cartel, despite the recovering prices and the extended cuts from Saudi Arabia and Russia.
Oil prices have been on the rise in recent months due to increased demand and tighter supply. Brent crude reached its highest level in over three months, at $85 a barrel.
In February 2022, following Russia’s invasion of Ukraine, oil prices peaked at over $130 per barrel.
During a virtual meeting on Friday, the Joint Ministerial Monitoring Committee (JMMC) of the oil producers affirmed the commitment of its member countries to the production reduction strategy until the end of 2024. The JMMC also expressed appreciation for Saudi Arabia’s additional voluntary cut of one million barrels per day (bpd) and Russia’s announcement of a further cut of 300,000 bpd for September.
In June, the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to reduce output in 2024. Despite concerns about the global economy, signs have emerged that the supply cuts are starting to have the desired effect.
Saudi Arabia is expected to gradually withdraw the voluntary cut over the coming months to avoid significant revenue shortfalls and economic growth dampening.
The next JMMC meeting is scheduled for October 4, with the group’s next ministerial meeting set for November 26.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
