OPEC+ agrees to keep 2m bpd production quota

The Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed to maintain the current 2 million barrel per day production output.

The group made the decision on Sunday at the end of the 34th virtual OPEC and non-OPEC ministerial meeting.

The decision comes two days after the Group of Seven (G7) nations agreed to a price cap on Russian oil.

At its previous meeting in October, OPEC+ agreed to cut production by 2 million barrels per day (bpd) from the market despite calls by the United States for more output.

The 13-member alliance said it upheld the decision “which was purely driven by market considerations and recognised in retrospect by the market participants to have been the necessary and the right course of action towards stabilising global oil markets”. 

OPEC+ said its decision was also in adherence to the approach of being proactive and preemptive. 

It said participating countries decided to “reaffirm the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC Ministerial Meeting on 18 July 2021 and the 33rd OPEC and non-OPEC Ministerial Meeting on 5 October 2022, including the adjustment of the frequency of the monthly meetings to become every two months for the Joint Ministerial Monitoring Committee (JMMC) and the authority of the JMMC to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments if necessary”. 

It also reiterated “the critical importance of adhering to full conformity and compensation mechanism taking advantage of the extension approved on the 33rd OPEC and non-OPEC Ministerial Meeting”.

The oil cartel fixed the next meeting for June 2023.

It said participating countries reinforced their readiness to meet at any time to take additional immediate measures to address market stability