Russian Deputy Prime Minister Alexander Novak announced on Friday that the OPEC+ group of major oil producers stands prepared to take action based on market conditions. He highlighted the significant impact of the situation in the Red Sea on trading relations and logistics chains.
Speaking on state TV, Novak emphasized the need for constant monitoring of the situation to enable joint decisions for adjusting actions aimed at correcting and balancing the market. Global oil prices have experienced a 10% increase since early December.
Energy exports play a pivotal role in Russia’s economy, making it imperative for the country to stay attuned to market dynamics. The OPEC+ Joint Ministerial Monitoring Committee (JMMC) recently proposed no changes to oil output plans during their meeting on February 1. The committee, composed of leading ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, can recommend policy changes or call for a full OPEC+ meeting.
The JMMC acknowledged the high conformity for participating OPEC and non-OPEC countries in terms of crude oil production data for November and December 2023. However, looming decisions await OPEC+, particularly regarding whether to extend the 2.2 million barrels per day (bpd) of voluntary oil output cuts, set to expire at the end of March. While discussions on extending or unwinding these cuts have yet to begin, the global energy landscape remains a focal point for strategic decisions in the coming months.
