Oil cut: OPEC, others attain 116% compliance
The Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC partners, that agreed to cut oil production to stem supply glut, attained 116 per cent compliance last month, the highest since the implementation of the agreement in January.
The Joint OPEC and non-OPEC Ministerial Monitoring Committee (JMMC) stated this at its last meeting.
The committee said in the report of the Joint OPEC and non-OPEC Technical Committee (JTC) for August, that OPEC and participating non-OPEC producing countries recorded the highest conformity ever with their voluntary adjustments in production.
This again underscored the commitment of participating countries to cooperating towards the rebalancing of the market. The JMMC expressed satisfaction with the results and steady progress towards full conformity with production adjustments. It encouraged the countries to continue on the path towards better conformity for the benefit of producers and consumers.
The JMMC noted that while some participating countries have consistently performed beyond their voluntary production adjustments, others are yet to achieve 100 per cent conformity.
Furthermore, the JMMC recommended that the JTC continue to build on the progress made at the JTC extraordinary session in Abu Dhabi on August 8, to support each participating country in its efforts towards achieving full conformity with the Declaration of Cooperation.
The JMMC noted recent market developments and expressed confidence that the oil market was moving towards the objectives of the Declaration of Cooperation. Recent data confirmed that global oil demand growth in 2017 is now better than expected, while for 2018, world oil demand is anticipated to be robust.
Commercial oil stocks in the Organisation for Economic Cooperation and Development (OECD) fell further last month, and the difference to the latest five-year average has been reduced by 168 million barrels since the beginning of this year. However, there remains another 170 million barrels of stock overhang to be depleted. Supported by the improving forward structure in the futures market, floating storage has also been on a declining trend since June.
The JMMC will continue to monitor other factors in the oil market and their influence on ongoing market rebalancing process. Every effort will be made to rebalance the market for the benefit of all, it said.
At its fifth meeting, which took place in Vienna, Austria, the JMMC welcomed the participation of Iraq, Libya and Nigeria, and the reaffirmation of their commitment to working closely with other countries to ensure the success of the Declaration of Cooperation.
Source: The Nation