The OPEC+ alliance is not discussing any proposals of changes to its current oil production plan, which envisages the group starting to add supply to the market in December, Russia’s Deputy Prime Minister Alexander Novak said on Thursday. OPEC+ initially planned to begin unwinding part of the 2.2 million barrels per day (bpd) of crude production cuts from October this year. However, after oil prices crashed in late August and early September, OPEC+ delayed the start of the unwinding of the cuts by two months until December 2024. According to Novak, Russia’s top oil official and representative at the OPEC+ meetings, the group, at present, isn’t looking to make any changes to its current production plan.
“All countries are generally fulfilling their obligations under the agreement. We are observing and monitoring the situation on the market in terms of the balance of supply and demand,” Russian news agency Interfax quoted Novak as saying on the sidelines of an energy conference in Russia. Earlier today, reports emerged that Saudi Arabia is determined to begin bringing back production as of December 1, as it now seeks to regain the market share it had lost over the past months with its large output cut. Saudi Arabia is willing to endure short-term oil price and revenue pain as it is making a U-turn in policy and going to take back market share and ditching its unofficial $100 oil price target, the Financial Times reported on Thursday, quoting sources with knowledge of the latest Saudi thinking. This latest thinking suggests that the Kingdom has come to accept that it would have to endure a period of lower oil prices if it wants to take market share back.