OPEC+ affirms readiness to meet as needed, take more prompt measures to support market equilibrium

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OPEC+ reaffirmed its readiness to meet more frequently if its members feel the need and to take more immediate measures to address any market developments, supporting equilibrium and stability of oil markets, in compliance with the group's proactive approach.

This came during the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) 34th meeting, which was held today, Dec. 4, virtually.

It is in line with the OPEC+’s decision last October to reduce crude oil output by two million barrels per day (bpd), which market players and analysts deemed as a correct measure to achieve stability in oil markets amid concerns about the global economic outlook, the state-run SPA previously reported.

During today’s meeting, JMMC member nations decided to convene their meetings bimonthly, instead of each month, agreeing to meet more frequently if its members feel the need. They also approved requesting a full ministerial gathering at any time to address market developments.

Further, they stressed the importance of full compliance with the oil output cut agreement as well as its compensation mechanism, while benefiting from the extension period approved at the OPEC+’s 33rd meeting.

The forthcoming full meeting is scheduled to be held on June 4, while the JMMC is set to meet on Feb. 1, 2023.

Last October, OPEC+ decided to slash crude oil production by two million bpd, starting from November 2022, according to Argaam’s data.