Oil cut deal now at 98% compliance level, says OPEC

The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) says the historic oil cut deal reached in November/December 2016 has attained a 98 percent compliance level.

JMMC said based on the report of the Joint OPEC-Non-OPEC Technical Committee (JTC) for the month of March, OPEC and Non-OPEC countries have continued their high level of conformity with their voluntary adjustments in production.

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 ministerial meeting held on 10 December 2016.

The 11 non-­OPEC oil producing countries cooperated with OPEC member countries in a concerted effort to accelerate the stabilization of the global oil market through voluntary adjustments in combined production of around 1.8 million barrels per day.

The resulting Declaration, which came into effect on January 1, 2017, is for six months and is extendable for an additional six months, depending on the status of supply and demand, including global inventories.

The JMMC expressed its satisfaction with the progress made towards full conformity with the voluntary production adjustments and encouraged all participating countries to press on towards 100 per cent conformity.

“As at March 2017, the OPEC and participating non­-OPEC countries achieved a conformity level of 98 per cent, an increase of 4 percentage points over the February 2017 performance. This demonstrates the significant willingness of all participating countries to continue their cooperation,” OPEC said.

The next JMMC meeting to be held in Vienna on 24 May 2017, which will be followed by the joint OPEC/non-OPEC conference during which the decision on extending the period of the production management will be taken.