Opec+ keeps oil output policy steady

London/Moscow/Dubai — A meeting of the top ministers of Opec+ has kept oil output policy unchanged, three Opec+ sources said, as oil prices hit their highest in five months.

A ministerial committee of the Organisation of the Petroleum Exporting Countries and allies led by Russia, known as Opec+, met to review the market and members’ implementation of output cuts.

Oil has rallied in 2024, driven by tighter supply, attacks on Russian energy infrastructure and war in the Middle East. Brent crude traded above $89 a barrel on Wednesday, its highest since late October 2023.

Opec+ members, led by Saudi Arabia and Russia, in March agreed to extend voluntary output cuts of 2.2-million barrels per day (bpd) until the end of June to support the market.

Russian deputy prime minister Alexander Novak said on Friday Russia had decided to focus on reducing oil output rather than exports in the second quarter to evenly share production cuts with other Opec+ member countries.

In a statement after the conclusion of the meeting, Opec+ said it welcomed the Russian announcement on its production.

“Participating countries with outstanding overproduced volumes for the months of January, February and March 2024 will submit their detailed compensation plans to the Opec secretariat by April 30 2024,” the statement said.

Iraq in March promised to lower exports to make up for pumping above its Opec target, a pledge that would cut shipments by 130,000 bpd from February. The 50,000 bpd cut in March, according to the survey, leaves more to do in later months to meet the pledge.

Reuters