OPEC+ Joint Ministerial Monitoring Committee (JMMC) is scheduled to meet online on July 15 to discuss the alliance’s progress and its next policy. JMMC will consider whether 23 producers under the group should extend the 9.6 million bpd output cut by another month or wind down the cutback to 7.7 million bpd.
With demand recovery gaining traction, many members are expected to lean toward the latter option. For instance, Russian oil producers have prepared to ramp up output next month as the Energy Ministry issued no guidance on production. Meanwhile, Energy Minister Alexander Novak said earlier this month that OPEC+ should stick to its previous decisions.
OPEC+ can proceed with easing their cuts, but persisting uncertainty continues to surround demand recovery outlook. The International Energy Agency on Friday warned that re-imposed lockdowns in Latin and North America, as well as the resurgence of COVID-19 cases, cast a cloud in the global oil market outlook.
At the same time, the billion-barrel inventory glut which built up during the first outbreak still looms. There is a concern that if OPEC+ decided to ease their production cuts, the oil price would crash once again.
