The Joint Ministerial Monitoring Committee of the OPEC+ alliance (which includes Russia, among other allies) meets on Wednesday, where it is expected to recommend keeping oil production levels unchanged amid a temporary recovery in global demand.
On the eve of that meeting, the Kremlin issued a statement saying that Russian President Vladimir Putin had a phone call with Saudi Crown Prince Mohammed bin Salman on Monday.
The Kremlin said in the statement that during the phone call, they discussed cooperation within the OPEC+ group of oil-producing countries in order to maintain the stability of oil prices.
Read: Saudi Energy Minister: OPEC+ shielded Saudi from oil market chaos
The Kremlin added that Putin discussed with Crown Prince Mohammed bin Salman cooperation on trade and energy.
Delegates from the group said in multiple statements that they expect the cabinet to maintain the status quo, as they await clarification on the recovery of consumption in China and the impact of sanctions on Russian supplies.
Reuters on Monday quoted three OPEC+ delegates as saying the group’s Joint Ministerial Monitoring Committee was likely to recommend maintaining the current oil production policy at its meeting this week.
The committee could call a full OPEC+ meeting if necessary.
Five OPEC+ sources told Reuters last week that the Joint Ministerial Monitoring Committee would discuss the economic outlook and the size of Chinese demand, adding that the committee was unlikely to propose any changes to current policy. One said the oil recovery in 2023 makes any adjustments unlikely.
OPEC+ agreed in October to cut production by 2 million barrels per day from November to 2023.
The monitoring committee meeting was scheduled to be a follow-up to a planned meeting of the OPEC+ Joint Technical Committee on January 31. But three OPEC+ sources told Reuters on Monday that the first meeting had been canceled.
The Joint Technical Committee advises the Joint Ministerial Monitoring Committee and the OPEC+ Comprehensive Ministerial Meeting on market fundamentals.
OPEC Secretary-General Haitham al-Ghais said earlier this month that he was “cautiously optimistic” about the global economy, as China’s nascent recovery will mitigate the impact of weakness in advanced economies.
Saudi energy minister, Prince Abdulaziz bin Salman, insisted last month that OPEC+ would be “proactive and cautious” to keep markets balanced.
Oil prices have recently been high, approaching $90 a barrel as China abandons nearly three years of strict Covid restrictions. But the path of recovery remains uncertain as the country faces a resurgence of virus cases, prompting OPEC and its allies to be cautious.
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