February 2, 2023
2 mins read

OPEC+ set to stay the course on oil output

The EIA said that ongoing concerns about global economic conditions as well as the easing Covid-19 restrictions in China raised the uncertainty of the outcomes of its demand forecasts….reports Asian Lite News

Leading oil officials have recommended to maintain the current oil output policy of OPEC+, the OPEC and its allies, amid an uncertain global economic outlook.

The OPEC+ agreed in October 2022 to cut production by 2 million barrels per day from the following month until the end of 2023. The cut equals to about 2 per cent of the annual global oil demand, Xinhua news agency reported.

Members of the OPEC+ Joint Ministerial Monitoring Committee (JMMC) “reaffirmed their commitment” to the current output plan at a virtual meeting on Wednesday and “urged all participating countries to achieve full conformity and adhere to the compensation mechanism,” according to an OPEC statement.

The JMMC comprises oil ministers from the OPEC+ countries. It has no decision-making power but provides policy recommendations for the OPEC+ ministerial meeting, the group’s decision-making body. It has also the authority to request additional OPEC+ ministerial meetings “at any time to address market developments,” according to OPEC.



The JMMC has reviewed the oil production data for November and December last year and “noted the overall conformity” for the OPEC+ countries, OPEC added.

The next JMMC meeting is scheduled for April 3. The next OPEC+ ministerial meeting, where the group will formally decide its output policy, is set for June 4.

In January, the US Energy Information Administration (EIA) said that global oil inventories will increase over the next two years with more global oil production than consumption. Partly as the result, crude oil prices will further go down, the EIA said in its January Short-Term Energy Outlook (STEO) report.

The report forecast that global production of liquid fuels will reach an average of 102.8 million barrels per day (b/d) in 2024, up from 100 million b/d in 2022, driven by large growth in non-OPEC production.

However, uncertainty over Russia’s oil supply will persist, particularly in early 2023, the report noted, expecting global consumption of liquid fuels will rise from an average of 99.4 million b/d in 2022 to 102.2 million b/d in 2024.

The EIA said that ongoing concerns about global economic conditions as well as the easing Covid-19 restrictions in China raised the uncertainty of the outcomes of its demand forecasts.

As for crude oil prices, the Brent crude oil price is forecast to average $83 per barrel in 2023, down 18 per cent from 2022, and continue to fall to $78 dollars in 2024 as global oil inventories build, putting downward pressure on crude oil prices.

Gasoline prices will also decline as both wholesale refining margins and crude oil prices fall, said the report, forecasting US gasoline refining margins to fall by 29 per cent in 2023 and by 14 per cent in 2024, leading to retail gasoline prices averaging around $3.30 per gallon in 2023 and $3.10 per gallon in 2024.

ALSO READ: Jaishankar, UAE envoy discuss deepening ties

Previous Story

NRIs Welcome 2023 Budget

Next Story

Eurozone inflation slows to 8.5% in Jan

Latest from -Top News

Ould Tah to head AfDB

Tah, a seasoned economist and development financier, will formally assume office on 1 September 2025, taking over from Nigeria’s Dr. Akinwumi Adesina Sidi Ould Tah of Mauritania has been elected as the

Big pay bump for SA workers

The landmark move, which follows months of intense negotiations with trade unions, is expected to benefit millions of civil servants across national and provincial departments. South Africa’s government has confirmed a sweeping

Deadly floods ravage Nigeria

Triggered by torrential rains and the collapse of a nearby dam on May 28, 2025, the floods have submerged vast areas, destroyed infrastructure, and displaced thousands of residents. The death toll from

Piyush Goyal Begins Europe Visit

As part of the visit, the minister will meet top leadership of major French companies such as Vicat, Total Energies, L’Oreal, Renault, Valeo, EDF and ATR….reports Asian Lite News Union Minister of

Call to Greylist Pakistan Over Terror Links

Freddy Svane, the former Danish Ambassador to India, said that it is high time for the world to acknowledge that Pakistan remains the epicentre of terrorism in the region….reports Asian Lite News
Go toTop

Don't Miss

OPEC+ to hold first in-person ministerial meeting since 2020

It’s the first in-person meeting at the ministerial level for

OPEC+ makes big cut in oil output

The production cuts will start in November, and the Organization