Oil prices could see renewed volatility as OPEC+ ministers are set to hold a call on Thursday to reinforce the importance of adhering to oil supply quotas, Bloomberg reports.
The move comes as the group just began gradually reviving halted production, adding roughly 138,000 barrels a day to the market this month.
Saudi Arabia, the de-facto leader of the group, has consistently emphasized the need for member nations to stick to agreed production limits. However, some countries have been persistently exceeding their quotas, prompting concerns about the integrity of the agreement.
According to delegates familiar with the matter, the call will see key members reaffirm the importance of quota compliance and the need for compensatory cuts to offset past overproduction. These delegates, who requested anonymity due to the private nature of the talks, indicated that Kazakhstan has been a particular point of contention.
Kazakhstan has reportedly surpassed its production ceiling significantly during the expansion startup of its massive Tengiz oil field. While former Energy Minister Almassadam Satkaliyev pledged last month to bring the country’s production back in line, he has since transitioned to head a new Nuclear Energy Agency, with Yerlan Akkenzhenov taking over as Energy Minister.
Looking ahead, OPEC+ is also scheduled to hold an online session of its Joint Ministerial Monitoring Committee (JMMC) on Saturday, which is tasked with overseeing the production cuts. The group intends to add another tranche of supply to the market in May, and delegates have indicated they expect this increase to proceed as planned.
