OPEC, Non-OPEC Report Highest Conformity to Voluntary Cuts

The Organization of the Petroleum Exporting Countries and 11 other producers have recorded the highest conformity level ever with their voluntary adjustments in production, achieving a level of 106%, reported AzerNews.

Overall conformity levels by OPEC and non-OPEC producing countries have steadily increased from January to May 2017, exceeding 100% in both April and May to reach its highest level since January 2017, the Joint OPEC-non-OPEC Ministerial Monitoring Committee (JMMC) said in a statement, Trade Arabia reported.

“In May 2017, there was an increase of four percentage points over the April 2017 performance. This is a convincing demonstration of the willingness of all participating countries to continue their cooperation until the set goal is achieved,” said the JMMC data.

 The committee is scheduled to meet in St. Petersburg, Russia, on July 24.

The oil nations decided late last year on an output cut of 1.8 million barrels per day for the first half of this year to reduce global oil inventories. Last month, they agreed to extend the deal by nine months to March 2018. The reductions will be on the same terms as those agreed in November 2016.

International crude benchmark Brent futures settled up 32 cents, or 0.7%, on Friday, to $45.54 a barrel. US West Texas Intermediate crude ended up 27 cents, or 0.6%, at $43.01 per barrel.

OPEC-led efforts to reduce production and end the oil glut have been frustrated by soaring output from the United States and OPEC members Libya and Nigeria, which are exempt from the cuts.