As expected, the Joint Ministerial Monitoring Committee of the OPEC+ alliance recommended at its meeting on Wednesday to adhere to the oil production policy, in light of the prospects of higher Chinese demand against concerns about the economic slowdown.
The alliance, which includes OPEC members as well as other allies such as Russia, agreed to reduce the production ceiling by 2 million barrels per day, or about 2 percent of global demand, from November 2022 to December 2023, to support the global market.
Russian Deputy Prime Minister Alexander Novak told Rossiya 24 that the current oil price level is acceptable, while demand for it may improve as China recovers from the Covid-19 pandemic.
Read: What will OPEC+ committee recommend at Wednesday meeting?
He added that the situation related to his country’s oil production and exports is stable despite price ceilings and Western sanctions.
The alliance ministers also decided during its online meeting to adjust the frequency of the monthly meetings, to become every two months for the Joint Ministerial Monitoring Committee, with the ministerial meeting of the “OPEC+” alliance to be held every 6 months.
The Joint Ministerial Monitoring Committee was given the authority to hold additional meetings, or request a coalition ministerial meeting at any time, to address market developments if necessary.
The Joint Ministerial Monitoring Committee reviewed crude oil production data for November and December 2022 and noted full compliance with the Declaration of Cooperation.
Committee members reaffirmed their commitment to the Declaration of Cooperation, which runs until the end of 2023, as agreed at the 33rd Ministerial Meeting on 5 October 2022, according to a statement issued at the end of the meeting. They urged all participating States to achieve full compliance and commitment to the compensation mechanism.
The next ministerial meeting is scheduled for June 4, while the Joint Ministerial Monitoring Committee will meet on April 3.
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