OPEC+ ministers have indicated that the oil producer alliance could tweak its latest output agreement if necessary to support the market, following a bearish reaction from the market to the complex deal.
Top OPEC+ ministers and officials, speaking at an economic forum in St. Petersburg, praised the agreement reached on Sunday, which calls for the phasing out of 2.2 million barrels per day (bpd) in voluntary production cuts over the course of a year starting from October. The group also agreed to maintain other cutbacks amounting to 3.66 million bpd until the end of 2025.
However, oil prices have dropped this week, with benchmark Brent crude touching a four-month low below $77 per barrel, pressured by skepticism about the impact of boosting supply at a time of rising output outside OPEC+ and doubts about demand.
Saudi Energy Minister Prince Abdulaziz bin Salman emphasized that the agreement has “all the mechanics” to allow for pausing or reversing the scheduled production increases if needed. Russian Deputy Prime Minister Alexander Novak echoed this sentiment, stating that the group is “ready to react quickly to market uncertainties” and may adjust the agreement if necessary.
Novak noted that the current OPEC+ agreement is helping to balance supply and demand and provides certainty for energy markets. The comments suggest that OPEC+ is willing to be flexible in its approach, underscoring the group’s commitment to maintaining market stability.
On Thursday, Brent crude found support above $78 per barrel, partly due to growing expectations of an interest rate cut from the U.S. Federal Reserve, which could boost oil demand.
The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and allies led by Russia, has played a crucial role in managing global oil supply and prices in recent years.