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OPEC, Allies Keep Options Open to Rebalance Markets

OPEC and its allies are scheduled to meet in Vienna on Nov. 30.OPEC and its allies are scheduled to meet in Vienna on Nov. 30.

OPEC and its non-OPEC allies reiterated that all options to rebalance the oil market “are left open”, as the producers announced the highest level of compliance with their agreement to curtail production.

The joint ministerial monitoring committee responsible for the agreement said on Saturday that producing countries achieved a record-high conformity level on their voluntary production adjustments at 120% in September, according to a statement on the website of the Organization of Petroleum Exporting Countries, Bloomberg reported.

“The JMMC will continue to monitor other factors in the oil market and their influence on the ongoing market rebalancing process,” it said. “All options are left open to ensure that every effort is made to rebalance the market for the benefit of all.”

The 24 oil-producing nations that agreed in December to cut 1.8 million barrels a day of their production, initially for a six-month period, have already extended their deal once—by nine months until the end of March 2018—in an effort to lower crude inventories.

The JMMC said in the statement that commercial oil stocks in the OECD countries fell further in September and now stand at 159 million barrels above their latest five-year average. The stocks have been reduced by 178 million barrels since the beginning of this year, JMMC said.

OPEC and its allies are scheduled to meet in Vienna on November 30, while JMMC said in the statement its next meeting is scheduled for the preceding day. Saudi Oil Minister Khalid al-Falih said on Saturday the global oil market is improving and stabilizing as oil exporting nations are fully complying with an agreement to curb supply in order to lift crude prices. Falih did not say whether he would recommend that curbs be extended further when OPEC meets next month.

"The market has improved a lot but has still some way to go,” Falih told reporters during a visit to the Iraqi capital, adding that “compliance within the group of 24” nations taking part in the cutbacks deal “exceeds 100%".

 

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