World Oil
(Bloomberg) — OPEC+ will resume its regular oil market monitoring meetings with an online session early next month, delegates said.
The Joint Ministerial Monitoring Committee, which includes group leaders Saudi Arabia and Russia, will meet in the first week of February, said the delegates, who asked not to be identified because information are confidential. One person said the meeting was scheduled for February 1.
OPEC and its allies began a new round of oil production cuts this month, aiming to avoid a global supply surplus in the first quarter and defend crude prices. Brent futures were little changed, near $77 a barrel on Tuesday.
Oil fell nearly 20% in the fourth quarter as record supplies from the United States and elsewhere offset the effect of OPEC+ supply constraints and strong fuel demand. Growth in oil consumption is expected to slow sharply this year, suggesting oversupply.
OPEC+ agreed at its last meeting in November to deepen existing production cuts this quarter by around 900,000 bpd. Still, the impact on prices has been muted as crude traders are skeptical about the amounts that will actually be implemented, with several key members struggling to cut production further.
Prices are receiving some support from unrest in the Middle East, which has erupted in recent weeks with attacks on merchant ships in the region. The conflict between Israel and Hamas rages, while Iran sent a warship to the Red Sea after the US Navy destroyed three boats operated by Houthi militants.
The OPEC+ JMMC typically meets every two months to review oil market conditions on behalf of ministers. The next coalition of 22 countries is due to meet on June 1 in Vienna.
Member country Angola left the group last month after 16 years amid a bitter dispute over its production quota, but its departure is not expected to impact supplies to the country or the alliance in its entirety.
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