OPEC+ Maintains Strategic Stance Amid Volatile Oil Markets

UAE's energy minister Suhail al-Mazrouei praised OPEC+ for its efforts to stabilize the oil market, despite not producing the majority of the world's oil. Rising Middle East tensions have caused oil prices to jump, and OPEC+ plans to start unwinding some cuts from December. No immediate changes are expected from the JMMC meeting on Wednesday.

United Arab Emirates energy minister Suhail al-Mazrouei lauded OPEC+ on Wednesday for its 'noble' efforts in balancing the global oil market, even though the group does not produce the majority of the world's oil.

'OPEC+ has sacrificed more than others, but the critical element is that it is staying together,' Mazrouei remarked at an industry event in Fujairah. He declined to comment on the short-term outlook for oil in 2025, citing geopolitical uncertainties.

Oil prices surged by over a dollar on Wednesday as concerns mounted over rising Middle East tensions, which could impact crude production following Iran's significant military strike against Israel. Brent crude was priced at $74.56 a barrel at 0330 GMT. High-level OPEC+ ministers and allies, including Russia, are set to hold an online joint ministerial monitoring committee (JMMC) meeting at 1200 GMT on Wednesday.

Oil prices have been declining in 2024, with Brent crude dropping below $70 a barrel last month for the first time since 2021, due to global demand worries and increasing supply from outside OPEC+. The group has reduced output by around 5.7% of global demand through a series of agreements since late 2022.

Sources within OPEC+ indicated that Wednesday's JMMC meeting is unlikely to propose any deviations from the current plan to begin easing output cuts come December.

(With inputs from agencies.)