In its latest meeting, OPEC+ kept its oil output policy unchanged, stressing the need for full conformity by some members who need to make additional cuts to compensate for overproduction.
Several ministers from the Organization of the Petroleum Exporting Countries and allies held an online joint ministerial monitoring committee meeting (JMMC) on Wednesday.
Need for full conformity
During the meeting, Iraq, Kazakhstan and Russia confirmed that they had achieved full conformity and compensation according to the schedules they submitted for September. The three countries reiterated their strong commitment to maintaining full conformity and compensation throughout the remaining period of the agreement.
“The JMMC emphasized the critical importance of achieving full conformity and compensation. It will continue to monitor adherence to the production adjustments,” added the OPEC+ statement.
The committee also noted that it will keep monitoring market conditions ahead of its next meeting on December 1.
OPEC+ is currently cutting output by a total of 5.86 million barrels per day or about 5.7 percent of global demand, in a bid to raise oil prices from their COVID-19 levels.
In September, oil prices slid below $70 per barrel for the first time since 2021. Since then, however, they have risen back above $75 amid concerns of escalating tensions in the Middle East, which could disrupt output in the region.
Read: Oil prices surge amid fears of Middle East conflict disrupting crude shipments
OPEC+ raises oil demand outlook
Last month, OPEC+ raised its long-term oil demand outlook, citing growth in India, Africa, and the Middle East amid a slower shift to electric vehicles and cleaner fuels. The group expects world oil demand to reach 118.9 million barrels per day by 2045, around 2.9 million bpd higher than last year’s report. The report also extended its timeline to 2050 and expected demand to hit 120.1 million barrels per day by then.
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