The OPEC+ group of oil producing nations is not considering bringing forward their next meeting, despite Russia’s recent announcement to unilaterally cut their oil production by 500,000 barrels per day (bpd) next month. According to Suhail al-Mazrouei, the energy minister of the United Arab Emirates, the oil market is already balanced and there is no requirement for a meeting.
The OPEC+ group agreed in October to cut their oil production targets by 2 million bpd until 2023. A ministerial committee of OPEC+ is set to meet in April, with a full ministerial meeting planned for June 4. The recent news of Russia’s cut in oil production led to a 2% increase in Brent oil prices, which are currently trading at just over $86 a barrel.
Mazrouei stated that the agreement made by OPEC+ is a “long term” one and will only be altered if the group sees something that would cause significant disruption to the market. However, they have not seen any such factors that would warrant a change. The energy minister mentioned that they are keeping a close eye on the easing of COVID-19 restrictions in China and the global economy, as these factors could potentially shake the market.
The situation in China is positive and is seen as a good sign, but the global economy is currently a little tight, leading people to conserve on everything, including oil. However, Mazrouei highlighted that this is not because of high oil prices, but rather due to the state of the economy as a whole.
In conclusion, the OPEC+ group is not considering altering their agreement or bringing forward their next meeting, as the oil market is stable and balanced. They will continue to monitor the global situation, but for now, the agreement made in October remains in place.