Brent, the global benchmark for crude oil, surged on Monday after OPEC and its allies—collectively known as OPEC+—announced voluntary production cuts. A month ago, oil prices hovered around $70 per barrel, the lowest level in about 15 months. By 5:23 p.m. Nigerian time on Monday, the price had jumped to $84.7 per barrel, according to global oil price data.
The increase followed the 48th meeting of OPEC’s Joint Ministerial Monitoring Committee (JMMC), held via videoconference. OPEC’s website reported that the committee reviewed crude‑oil production data for January and February 2023 and confirmed overall compliance with the Declaration of Cooperation (DoC) by participating OPEC and non‑OPEC countries. The members reaffirmed their commitment to the DoC, which has been extended to the end of 2023 as decided at the 33rd OPEC‑non‑OPEC Ministerial Meeting on 5 October 2022, and urged all participants to achieve full conformity and adhere to the compensation mechanism.
The meeting noted the voluntary production adjustments announced on 2 April 2023: Saudi Arabia – 500,000 bpd; Iraq – 211,000 bpd; United Arab Emirates – 144,000 bpd; Kuwait – 128,000 bpd; Kazakhstan – 78,000 bpd; Algeria – 48,000 bpd; Oman – 40,000 bpd; and Gabon – 8,000 bpd, effective from May until the end of 2023. These cuts are in addition to the adjustments decided at the 33rd OPEC‑non‑OPEC ministerial meeting and to Russia’s voluntary reduction of 500,000 bpd, based on February 2023 secondary‑source production levels. Altogether, the additional voluntary cuts amount to 1.66 million bpd.
Nigeria, a long‑standing OPEC member, was highlighted as part of the collective effort. OPEC described the production cuts as a precautionary measure aimed at supporting market stability. The committee thanked the OPEC Secretariat for its contributions and announced that the next JMMC meeting (the 49th) is scheduled for 4 June 2023.
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