OPEC records highest level of cut compliance

The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) says compliance with the production cut agreement has hit 122 percent — the highest ever.

JMMC said it reached this conclusion based on the report of the Joint OPEC-Non-OPEC Technical Committee (JTC) for November 2017.

The JMMC was established after the 171st ministerial conference where 11 non-OPEC oil producing countries and 13 OPEC members agreed to adjust oil production to around 1.8 million barrels per day to stabilise the global oil market.

The agreement, which took effect on January 1, 2017, lasted for six months and was extended for another nine months at the meeting which held on May 25, 2017.

At its third meeting, which held in Vienna on November 30, 2017, the joint OPEC-Non-OPEC Producing Countries’ Ministers agreed to amend the declaration of cooperation so that it will last till the end of 2018.

“As of November 2017, the OPEC and participating non-OPEC producing countries achieved an impressive highest conformity level of 122 percent, following the pattern of high performances in the past months,” a statement by the organisation read.

“This, coupled with the aforementioned amendment of the Declaration of Cooperation, is an unequivocal demonstration of the steadfast commitment of participating countries to continue working towards the achievement of the goal of rebalancing the market and putting it on a sustainable stable footing.

“The JMMC expressed great satisfaction with the results and sustained level of high conformity with the voluntary production adjustments, and encouraged all participating countries to achieve full conformity for the benefit of producers and consumers alike.”