OPEC dismisses report of oil prices falling to $50 if production cuts aren't met

Shafaq News/ On Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) refuted reports suggesting that crude oil prices could drop to $50 per barrel if member nations fail to adhere to production cuts. The organization criticized these estimates as "inaccurate and entirely misleading."

In a statement, OPEC addressed a report by the US-based Wall Street Journal, which claimed that Saudi Arabia’s oil minister had warned of a potential price drop to $50 per barrel. The statement from OPEC clarified, "The article incorrectly stated that a conference call took place, during which Saudi Energy Minister allegedly warned OPEC+ members of a possible price decline to $50 per barrel if agreed production cuts were not followed."

The Wall Street Journal report surfaced following a high-level meeting of OPEC+ ministers, where it was decided to maintain the current oil production policy. The group confirmed plans to begin increasing output in December while urging certain members to deepen cuts to offset overproduction.

Earlier on Wednesday, ministers from OPEC and its allies, including Russia, convened online for a Joint Ministerial Monitoring Committee meeting. The committee reiterated the importance of full compliance with the production cuts and emphasized the need for compensation for overproduction.

In a statement released after the meeting, OPEC said, "The Joint Ministerial Monitoring Committee stressed the critical importance of achieving full compliance and compensation. Additionally, the committee will continue to monitor market conditions."

Oil prices had dipped below $70 per barrel in September for the first time since 2021 but have since rebounded above $75, driven by concerns over potential disruptions to production amid escalating tensions in the Middle East.