Credit: Gladder via Getty Images.

At the OPEC+ ministerial meeting on Wednesday, members remained committed to its oil output policy, continuing voluntary cuts of 2.2 million barrels per day (mbpd) until June. 

OPEC’s JMCC met to review the implementation of oil output cuts by participating countries. 

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OPEC+ members have implemented a series of production cuts since 2022 in response to challenges posed by increased oil production in the US and weak global demand. The International Energy Agency stated in its 2024 oil report that the annual increase in oil demand dropped significantly as supply from non-OPEC countries such as the US, Brazil, Guyana and Canada gained dominance.

On Monday, US futures closed at a five-month high, following economic growth expectations in the US and China to boost demand, while OPEC+ countries tightened supply, Reuters reported. According to the Energy Information Administration, crude oil production in the US topped global oil production charts for the sixth straight year, averaging 12.9mbpd in 2023.

On 2 April, Brent crude stood at $88.97 and traded above $89 on Wednesday, the highest since October 2023.

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Last month, Russia announced a reduction in oil production for the second quarter to 9mbpd by the end of June to focus on production rather than exports. In addition, the further voluntary cuts by OPEC members have significantly reduced combined production targets amid rising global geopolitical tensions. 

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“Participating countries with outstanding overproduced volumes for January, February and March 2024 will submit their detailed compensation plans to the OPEC Secretariat by 30 April 2024,” OPEC said in a statement. 

The statement said the committee will continue to “assess market conditions” closely and encourage the cooperating countries to address market developments and take additional measures “at any time”.

The next JMCC meeting is scheduled for 1 June 2024.