An OPEC+ Committee Meets today in Light of Declining Oil Prices

OPEC and its allies led by Russia will hold an online meeting today to discuss the extent of commitment to the agreed production cuts and demand trends in light of declining oil prices and the cooling prospects for economic recovery.

The committee, which includes major producers including Saudi Arabia and Russia from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, or the group known as OPEC+, is expected to maintain the current production cuts target of 7.7 million barrels per day, or about 8% of global demand.

They are also likely to pressure countries that are reluctant to implement cuts, such as Iraq, Nigeria and the UAE, to cut more production to compensate for the reduction in excess production.

Sources in OPEC+ said that the meeting of the committee known as the Joint Ministerial Monitoring Committee is expected to start at 12:00 GMT.

OPEC+ has been cutting production since January 2017 to help support prices and reduce global oil inventories. Production cuts increased to a record 9.7 million barrels per day between May and July after demand faltered by the Corona pandemic.

The group demanded Iraq and others to pump less oil than its quotas in September to compensate for excess production between May and July.