OpeOluwani Akintayo
with Agency reports
24 September 2017, Sweetcrude, Lagos — The Organisation of the Petroleum Exporting Countries, OPEC, has rated compliance with the crude oil cuts by its members and Non-OPEC as high, pegging it at 116 percent.
In a statement published on the group’s website tilted ‘JJMC reports highest ever conformity level’, the group said its rating was as a result of the Joint OPEC-Non-OPEC Ministerial Monitoring Committee, JMMC based on a report of the Joint OPEC-Non-OPEC Technical Committee, JTC for August 2017.
The JMMC was established following OPEC’s 171st Ministerial Conference Decision on 30 November 2016 and the subsequent Declaration of Corporation made at the joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016 at which 11 (now 10) non-OPEC oil producing countries cooperated with the 13 market through voluntary adjustments in total production of around 1.8 million barrels per day.
The resulting declaration which came into effect on 1 January 2017, was for six months.
The second joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on 25 May 2017, decided to extend the voluntary production adjustments for another nine months commencing 1 July 2017.
At the 5th meeting which took place in Vienna Austria in June, President of the OPEC conference, Khalid A. Al-Falih, said conformity level was 100 percent.
OPEC described the 116 percent conformity level achieved in August as “excellent”, the highest since the start of the Declaration of Cooperation.
“This again underscores the resolute commitment of participating producing countries to cooperate towards the rebalancing of the market”.
The statement said JMMC expressed “satisfaction” with the overall results and steady progress made towards full conformity with the production adjustments and encouraged all participating countries to continue on the path towards better conformity for the benefit of producers and consumers alike.
The group then added that some participating producing countries have consistently performed beyond their voluntary production adjustments, while others are yet to achieve 100 percent conformity.
