OPEC Sticks to Production Cuts Amid Rising Oil Prices

OPEC's Joint Ministerial Monitoring Committee (JMMC) meeting has come to an end without any changes to its total output level or supply cut pledges. The coalition, which includes OPEC+ allies, had been expected to maintain its current production cuts, and it seems that expectation has been met.

The group had already implemented a 2.2 million b/d production cut, and analysts were anticipating that this policy would remain in place despite the recent surge in oil prices. Brent futures have surpassed $89/bbl, but Daniel Hynes from ANZ Bank believes that the geopolitical backdrop will not prompt OPEC to change its supply policy.

OPEC+ output fell by 50,000 b/d month-on-month to 26.42 million bbls in March, largely due to reductions in production from Iraq and Nigeria. The alliance has acknowledged Russia's decision to switch its total output quota to 'production cuts' instead of export bans.