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OPEC+ panel seen not making any policy changes after unexpected output hike

Two delegates said that the top OPEC+ Ministers meeting on Saturday will not make any new changes to oil output policy. This is after this week's unexpected decision by the group to increase production further sent prices to pandemic levels.

At 1200 GMT, a joint ministerial monitor committee (JMMC), or Organization of the Petroleum Exporting Countries plus allies, led by Russia will be held online.

The JMMC is a group of oil ministers that includes Saudi Arabia, Russia, and other major producers. It meets about every two months, and it can make policy recommendations.

On Saturday, two sources stated that no new decisions are expected to be made at the meeting.

Eight OPEC+ nations unexpectedly agreed on Thursday to accelerate their plan to phase-out oil production cuts by increasing production by 411,000 barrels a day in May, instead of 135,000 bpd. This decision caused oil prices to extend steep losses.

Brent crude closed 7% lower on Friday at $65.58 a barrel, its lowest level since August 2021. The decision by OPEC+ and fears of a trade war following US President Donald Trump’s announcement about tariffs this week pushed the price down.

The May increase is part of a plan that Russia, Saudi Arabia and the UAE have agreed to implement in order to slowly unwind the most recent production cut of 2.2 millions bpd. This was implemented this month.

OPEC+ has also agreed to cut 3.65 million bpd in other production until the end next year. This will support the market. Reporting by Olesya Almakhova, Alex Lawler and Maha El Dahan; Editing by Topra Chopra

(source: Reuters)