The “OPEC +” coalition decided, on Sunday, to maintain oil production levels without an increase or decrease, according to the agreement of last October 5, which stipulated a reduction of two million barrels per day.
According to a statement issued after its members met virtually, the coalition reaffirmed its previous decisions, “including adjusting the frequency of the monthly meetings of the Joint Ministerial Committee to Monitor Production to be every two months.”
The Joint Ministerial Committee was also granted “the authority to hold additional meetings or request the convening of the ministerial meeting of member states at any time.”
The statement of oil producers from within and outside OPEC stated that the importance of full compliance with the agreement and the compensation mechanism, and benefiting from the extension period approved at the 33rd ministerial meeting of OPEC + (last October meeting) was reaffirmed.
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The decision of the “OPEC +” coalition came after the Group of Seven and Australia agreed to set a ceiling for Russian seaborne crude at $ 60 a barrel, while Moscow announced that it would not sell its oil according to this agreement.
In the context, Algerian Energy Minister Mohamed Arkab stated, “At the end of the discussions of the OPEC + meeting, we decided to continue our joint efforts within OPEC + to ensure the stability and balance of the global oil market, in accordance with the agreement that we concluded on October 5 in Vienna.”
“We remain very vigilant of changes in the fundamentals of the international oil market,” Arkab said in a statement.
The Algerian official added, “It seemed to us that for several weeks, the accumulation of factors that pushed the market downward had a negative impact on price volatility and the stability of the global oil market.”
According to Arkab, fears of a global economic recession, a slowdown in the Chinese economy, high inflation and a strong dollar weigh on the prospects for global oil demand growth.
The global oil market is under pressure, in light of the decision of the Group of Seven and Australia to set ceilings for the prices of Russian oil transported by sea, the outbreak of Corona in China, and fears that the global economy will enter a recession.