LONDON/DUBAI: An OPEC+ panel is likely to recommend sticking with the oil producer group’s output policy when it meets on Wednesday, four OPEC+ delegates said, as it weighs prospects for higher Chinese demand against concerns about economic slowdown.
Key ministers from OPEC+ countries - members of the Organization of the Petroleum Exporting Countries (OPEC) and others including Russia - will meet virtually at 1300 GMT. The panel can call for a full OPEC+ meeting if warranted.
“It seems that we will not see a new decision,” an OPEC+ delegate said in reference to the meeting of the panel, called the Joint Ministerial Monitoring Committee (JMMC). Three other delegates made similar remarks.
OPEC+ agreed to cut its production target by 2 million barrels per day (bpd), about 2% of world demand, from November last year through until the end of 2023 to support the market.
The U.S. Federal Reserve’s interest rate decision later on Wednesday is also in focus for the oil market. Investors are hoping the U.S. central bank will signal an end to its rate-hiking cycle.
“Caution is likely to take hold across the energy complex today as market players await clarity on the next moves from the Federal Reserve and OPEC+,” said Stephen Brennock of oil broker PVM, who added OPEC+ was likely to keep policy unchanged.
The Federal Reserve is expected to deliver its decision at 1900 GMT.