OPEC+ JMMC makes no recommendation to amend current quotas

Quantum Commodity Intelligence – The OPEC+ Joint Ministerial Monitoring Committee (JMMC) has not recommended any changes to the producer alliance's current production policy after meeting Friday.

The decision was widely anticipated after crude oil prices have seen a strong upwards trajectory since early July when Saudi Arabia and Russia announced unilateral cuts outside of the existing group agreement.

The JMMC typically reviews overall market fundamentals, including the supply/demand balances, inventories and OPEC+ compliance matters, but the group is not obliged to implement any recommendations.

At Friday's short video conference call the Committee discussed a number of broader issues including global demand projections for the remainder of the year and beyond, with input from member states.

"The JMMC reviewed the crude oil production data for the months of May and June 2023 and noted the overall conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC). The committee urged all participating countries to achieve full conformity and adhere to the compensation mechanism," OPEC said in a statement.

The 23-nation OPEC+ had cut output by 2 million bpd in the fourth quarter of last year, which came into effect at the start of November.

In April of this year, several members of OPEC+ announced additional production cuts amounting to around 1.15 million bpd from May until the end of 2023, while Russia said it will extend its separate 500,000-bpd cut until the end of the year.

Saudi Arabia subsequently announced an additional voluntarily cut of 1 million bpd from July, which has since been extended into August and September, taking its output down to around 9 million bpd.

Russia has also pledged to reduce exports by an extra 500,000 bpd in August and 300,000 bpd in September.

The next meeting of the JMMC (50th) is scheduled for 4 October 2023.