OPEC+ Committee Keeps Oil Production Levels Unchanged

On Wednesday, a technical committee of the influential OPEC+ oil producers’ coalition made no recommendation to change the group’s existing production policy in its latest meeting, according to three delegates.

The OPEC+ Joint Ministerial Monitoring Committee, which tracks the alliance’s compliance with its output quota, convened digitally on Wednesday. The second OPEC+ technical group, the Joint Technical Committee that studies market fundamentals, canceled a virtual meeting originally scheduled for Jan. 31, according to a delegate.  

International oil prices have climbed in the past two weeks, nearing $90 a barrel as China — the world’s biggest oil importer — abandons almost three years of strict anti-Covid restrictions. Still, the path of recovery remains uncertain as the country faces a resurgence of virus cases, prompting the Organization of Petroleum Exporting Countries and its allies to stay conservative.

At the same time, OPEC+ is waiting to see the full impact of European Union sanctions on member-country Russia over its invasion of Ukraine. Measures targeting its crude oil sales took effect in December and restrictions on its trade in refined products will arrive next month, but so far Russian shipments have been surprisingly resilient.

“OPEC+ looks increasingly likely to keep output levels unchanged even after the scheduled meeting,” Raad Alkadiri, an analyst at consultant Eurasia Group, said in a report. “Prices have firmed, supply remains tight, and significant levels of uncertainty prevail for both supply and demand.”