The seven OPEC+ countries running voluntary production cuts met online Sunday and decided to hold November output at September's required levels.
Zoom in: Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, the group that announced extra voluntary adjustments in April and November 2023, made the call on a videoconference on October 4.
- The seven reiterated a collective commitment to full conformity with the Declaration of Cooperation and will keep holding monthly meetings. The next one is November 1.
The big picture: On the same day, OPEC's Joint Ministerial Monitoring Committee held its 68th meeting and highlighted "the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy."
What they're saying: The committee expressed concern about attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is "both costly and takes a long time, thereby affecting overall supply availability."
- It added that any action undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increases market volatility.
Between the lines: Holding output flat is a decision to let a tight market stay tight. The committee reviewed crude production data for July and August and noted overall conformity among OPEC and non-OPEC participants.
- The monitoring committee seats Nigeria and Venezuela alongside the seven producers making voluntary cuts, and it reaffirmed it will track adherence to the adjustments set at the December 2024 ministerial meeting.
What's next: The monitoring committee meets again on November 29 and retains the authority to convene extra sessions or request a full OPEC and non-OPEC ministerial meeting.
Why it matters: Pump and diesel prices track crude, so a group that declines to add barrels while refineries and shipping lanes are under threat leaves US drivers and freight operators exposed to the next supply shock.
