OPEC+ Pressure: Final Warning for Non-Compliant Members

The global oil coalition gives lagging nations 10 days to close production gaps amid unprecedented market volatility.

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Official Warning

Shockwaves Continue

Official Warning

In a significant move, the OPEC+ Joint Ministerial Monitoring Committee (JMMC) has given member states
that have failed to fully comply with agreed production cuts a deadline of April 15 to submit updated
and pre-approved compensation plans to the OPEC Secretariat.
This announcement followed the committee’s 59th meeting, held via video conference,
where it emphasized the critical importance of full compliance to maintain global market stability.

During the session, the committee reviewed crude oil production data for January
and February without introducing any changes to the current production policy.
It also expressed appreciation for the additional voluntary cuts announced by eight member countries in April and November 2023
—contributions that have helped bolster market stability despite ongoing turbulence.

Shockwaves Continue

These developments came amid a steep two-day decline in oil prices,
with Brent crude falling more than 10% and U.S. futures hitting their lowest levels since May 2023.
The downturn has been driven by a mix of factors, chiefly the unexpected production increase by OPEC+,
coupled with U.S. President Donald Trump’s announcement of new tariffs that could dampen global oil demand.

In a surprising policy shift, the OPEC+ alliance revealed plans to inject over 400,000 additional barrels per day into the market next month
—three times the previously planned increase.
This abrupt departure from years of tight supply controls that had supported prices has sparked widespread uncertainty
about the short-term direction of the oil market.

The next meeting of the JMMC is scheduled for May 28, with global markets watching closely for the coalition’s next moves.

OPEC+ Pressure: Final Warning for Non-Compliant Members

OPEC+ Pressure: Final Warning for Non-Compliant Members

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