The OPEC+ joint ministerial monitoring committee meeting (JMMC) concluded on Wednesday, with the ministers refraining from making any changes to production policy, maintaining the plan to start raising output in December.
“The JMMC emphasized the critical importance of achieving full conformity and compensation. Furthermore, the Committee will continuously assess market conditions,” OPEC said in a post-meeting statement.
Once again, ministers cautioned cartel members who continue to produce above quota.
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Earlier on Wednesday, Saudi Energy Minister Prince Abdulaziz bin Salman warned OPEC+ ministers that if some members insisted on continually violating their quota agreements, oil prices could drop to $50 per barrel. Iraq and Kazakhstan are the most often cited violators of the output-cut agreement. While both countries have reported that they were in compliance in September, the official numbers will not be available to verify until next week, according to Reuters.
This is part of the escalating Saudi threat to raise its price target and regain market share it has given up by bearing the heaviest burden of oil output cuts. The Kingdom has been going above and beyond to restrict supply to the market for more than a year. Apart from its share of the OPEC+ cuts in force since last summer, Saudi Arabia is also voluntarily keeping another 1 million barrels per day (bpd) off the market. It has been strictly sticking to its plan to produce “around 9 million bpd”—it has been consistently in line with its targeted oil output over the past year.
Total OPEC+ output cuts currently represent 5.86 million bpd.
In December, OPEC+ is planning to increase output by 180,000 bpd and it unwinds cuts.
By Charles Kennedy for Oilprice.com