OPEC (Organization of the Petroleum Exporting Countries) currently comprises 13 member countries, with five in Asia, seven in Africa, and Venezuela in South America. It is an organization made up of the world's major oil-exporting countries and holds significant influence. OPEC's crude oil production accounts for about 40% of the world's output. In addition to the 13-member OPEC, there is also an OPEC+ organization, led by Russia, which includes different member countries from those in OPEC.
Theoretically, OPEC's policies only affect its 13 member countries, but OPEC+ often follows OPEC's policies, constituting a powerful organization that closely monitors the actions of nations and investors worldwide.
A representative of OPEC+ recently stated that at the upcoming Joint Ministerial Monitoring Committee (JMMC) meeting next week, there would be no adjustments to the current oil policies, as the previously set production reduction targets have been met and have been effective. Any further reduction or increase in production might have adverse effects.
In a previous meeting, OPEC agreed to reduce production by 2.2 million barrels per day. Except for Iraq and Kazakhstan, all countries have met their reduction targets. Therefore, this meeting is generally considered a session to urge these two countries to complete their targets, rather than to expand reduction quotas. These two countries have promised to meet their reduction targets and even offer compensation later.
Current mainstream analysis believes that neither the upcoming meeting nor the one on June 1st will increase the reduction scale, as the oil market does not solely belong to OPEC. The United States and several non-OPEC countries are also producing and exporting oil. The current reduction target has already achieved its initial goal, successfully avoiding oversupply, so there is no need for further adjustments.
