The Joint Ministerial Monitoring Committee (JMMC) of OPEC did not decide to change production policy at its virtual meeting yesterday, Commerzbank’s commodity analyst Carsten Fritsch notes.
OPEC keeps production policy intact
“The JMMC of OPEC did not decide to change production policy at its virtual meeting yesterday This had already been expected from statements made by informed sources in the run-up to the meeting. This means that the planned gradual increase in oil production from the 4th quarter onwards will remain in place for the time being.”
“Whether this will actually happen, however, depends on market conditions, as representatives of Saudi Arabia and Russia have repeatedly emphasized. The 8% drop in oil prices since mid-July, triggered by demand concerns, is likely to have made OPEC aware of how ambitious the intended supply increase is, should demand grow less strongly than expected.”
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