25 July 2018, Sweetcrude, Lagos — The Organization of the Petroleum Exporting Counties, OPEC, has re-affirmed its intent to consistently achieve an overall conformity level of not less than 100 percent in its reigning oil production cut deal aimed at stabilising the crude oil market.
This came as the organisation reported a 121 percent compliance with the oil production cut in June.
The OPEC Joint Ministerial Monitoring Committee, JMMC, after it concluded a teleconference meeting addressing oil market conditions and short-term prospects, said participating countries in the Declaration of Cooperation achieved a conformity level of 121 percent in June.
At the meeting last week, JMMC reviewed recent market developments and considered the report provided by the Joint Technical Committee, JTC, regarding the monitoring of the overall conformity levels of participating countries in the Declaration of Cooperation for the month of June.
The JMMC also considered market conditions for the month of July as well as individual country production levels for this month and was satisfied that overall performance will not deviate from the 100 percent conformity targeted by the decision reached at the 4th OPEC and Non-OPEC ministerial meeting on June 23.
The committee decided to continue closely monitoring oil market conditions and developments with a view to improving market stability for the benefit of producers, consumers and the global economy, at large.
The committee reaffirmed its intent to strive to achieve an overall conformity level of no less than 100 percent.
By this, the organisation is aiming to see a conformity level of over 100 percent every month from all the participating countries for as long as the production cuts last.
Furthermore, the JMMC decided to hold monthly meetings (physically or by teleconference) with the objective of more closely monitoring the market and recommending appropriate response measures.
The JMMC was established following OPEC’s 171st Ministerial Conference decision of November 30, 2016, and the subsequent Declaration of Cooperation made at the joint OPEC/Non-OPEC Producing Countries’ Ministerial Meeting held on December 10, 2016. Through the Declaration, 11 (now 10) non-OPEC oil-producing countries, led by Russia, and OPEC’s 13 (now 15) member countries decided on voluntary production adjustments of around 1.8 million barrels per day as part of efforts to accelerate the stabilisation of the global oil market.
The next teleconference meeting of the JMMC will take place on August 20, following the meeting of the JTC the same day.