The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) has reported that OPEC and non-OPEC countries are on the right track towards full conformity with their adjustments in production, but there is still room for improvement.
This emerged after the Joint OPEC-Non-OPEC Technical Committee (JTC) held its inaugural meeting on February 22 at the OPEC Secretariat in Vienna, where conformity with production level cuts featured high on the agenda.
The cuts decided on by OPEC in November last year were the first since 2008. This was followed by voluntary adjustments by a number of non-OPEC countries, as set out in their Declaration of Cooperation in December.
In Vienna the JTC, a technical sub-Committee of the JMMC, considered presentations by the OPEC Secretariat on current market developments and deliberated on various technical issues in regards to reporting and conformity.
The JTC’s report was then submitted to the JMMC which expressed satisfaction with progress being made towards full conformity with the production adjustments.
The JTC report for January 2017 said that OPEC and non-OPEC producers had achieved a conformity level of 86 per cent.
The International Energy Agency (IEA) said in its Oil Market Report earlier this month that OPEC’s estimated production in January was 32.1 million barrels per day and that the organisation had achieved a record initial compliance rate of 90%.
The JMMC said there was still room for improvement striving to reach 100% conformity, while urging all involved to press on towards this goal.
The second meeting of the JTC is scheduled to take place in Vienna in March.
OPEC says oil production cuts can slice deeper
Posted by | 27/02/2017
