Following the 4th October Joint Ministerial Monitoring Committee meeting, OPEC announced that there would be no change to crude oil output cuts, meaning that the output cut would remain in excess of 3 million barrels per day (bpd). An official press release gave special mention to Saudi Arabia and Russia, countries that have voluntarily cut an additional 1 million bpd and 300,000 bpd, respectively, for “supporting the stability of the oil market.”
Market players anticipated that OPEC output levels would not change since the previous meeting in August. The official OPEC output cuts amount to more than 3 million barrels per day. However, sources believe that Saudi Arabia may reduce its voluntary output cuts, given that elevated prices may be starting to weigh on demand. Additionally, OPEC rose in August and September due to increased production by members Iran and Nigeria.
For reference, the Brent crude oil price [Mintec Code: BCRD] closed at $90.92/barrel on 3rd October, down 3.2% on the week, representing a 1% year-on-year decline.
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