(Bloomberg):The Organization of the Petroleum Exporting Countries (OPEC) and non-member oil producers OPEC+ maintains plans to begin a gradual recovery in production from late 2020, despite signs of an impending oversupply. did.

The statement issued by OPEC+ after the conclusion of the Joint Ministerial Monitoring Committee (JMMC) held online on the 2nd had no changes whatsoever. The company plans to continue increasing production by 180,000 barrels per day starting in December. OPEC+ had delayed the production increase by two months from originally planned, citing weak market sentiment.

Oil prices rose more than 5% in the two days after OPEC member Iran attacked Israel. However, at around $75 per barrel, it is about 14% lower than in July. This comes as traders focus on weak demand from China and rising supply from the Americas.

The recent drop in oil prices is welcome for consumers who have suffered from years of soaring prices and central banks that have cut interest rates, but it is a blow to the finances of OPEC+ countries.

Saudi Arabia this week revised down its growth forecast, saying its budget deficit is now expected to be larger than previously expected. Russia also relies on energy revenues to finance its war of aggression in Ukraine.

According to a person familiar with the matter, who requested anonymity, discussion at the JMMC meeting on the 2nd focused on Iraq, Kazakhstan, and Russia, which have not fulfilled their agreed production cuts. Although the three countries “reiterated their strong commitment” to the agreement, most continue to produce above their quotas and have yet to begin making additional production cuts to compensate for their violations.

Original title: OPEC+ Makes No Changes to Plans For Reviving Oil Production (excerpt)

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