The OPEC+ ministerial panel met today and decided to continue with its current oil production policies, which implies that there will be no change in current output and production cuts will stay in place.

The OPEC+ kept its policy unchanged following Saudi Arabia's decision to extend its voluntary production cut of one million barrels per day into September.

The panel ratified its existing policies at a meeting held this afternoon and urged members to “achieve full conformity and adhere to the compensation mechanism.”

The Joint Ministerial Monitoring Committee (JMMC) also agreed to meet once every two months, instead of every month, but hold additional meetings as needed, meaning the next meeting will take place in October. 

Saudi Arabia announced last night that it would continue its voluntary oil production cut of 1 million barrels per day for at least one more month, to include September, a move which the kingdom said could be “extended or deepened”.

A statement to the Saudi Press Agency (SPA) from an official source at the kingdom’s Ministry of Energy said production will be approximately nine million barrels per day.

The ministry source said the cut is in addition to the voluntary cut previously announced by the kingdom in April 2023, which extends until the end of December 2024.

“The source confirmed that this additional voluntary cut comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of oil markets," the SPA said. 

The JMMC "expressed its full recognition and support" for Saudi efforts at supporting oil market stability, as well as a decision by Russia to cut kilo barrels per day (kbd) for September.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)