Sources from OPEC+ told Reuters that the meeting of the group's senior ministers on Friday kept the oil production policy unchanged, following Saudi Arabia's decision to extend voluntary production cuts until September, which has helped push oil prices higher.
One source indicated that today's meeting would be "very short." Saudi Arabia announced yesterday that it will extend its voluntary oil production cut of one million barrels per day for another month until September, adding that the reduction could be extended beyond that date or increased. Oil prices were trading around $86 per barrel on Friday, close to their highest levels since mid-April.
Russian Deputy Prime Minister Alexander Novak mentioned shortly after Saudi Arabia's announcement that Russia would also reduce its oil exports by 300,000 barrels per day in September.
A source familiar with the matter told Reuters that Algeria, an OPEC member which announced an additional voluntary cut of 20,000 barrels per day for August, has not yet decided whether to extend this cut to September.
The Joint Ministerial Monitoring Committee can call for a meeting of all members of the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, if necessary.
Oil prices rose by more than 14% in July compared to June, marking the largest monthly increase since January of last year, as supply shortages and increased demand outweighed concerns about the impact of rising interest rates and inflation on economic growth.
OPEC+ reached an agreement to limit supplies until 2024 at its last meeting in June, with Saudi Arabia committing to a voluntary production cut in July, which was extended to include August. The production cuts from the alliance, excluding additional voluntary cuts from the three producers, amount to 3.66 million barrels per day, or approximately 3.6% of global demand.
