OPEC and participating Non-OPEC producing countries have recorded the highest conformity ever with their voluntary adjustments in production, achieving a level of 116 per cent, according to the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC)
The view was on the basis of the Report of the Joint OPEC-Non-OPEC Technical Committee (JTC) for the month of August 2017
At its 5th meeting, which took place in Vienna on 22 September 2017, the JMMC welcomed the participation of Iraq, Libya and Nigeria, and the reaffirmation of their commitment to work closely with other participating producing countries to ensure the success of the Declaration of Cooperation.
Khalid A. Al-Falih, president of the OPEC Conference and minister of energy industry and mineral resources of the Kingdom of Saudi Arabia, participated in the meeting by telephone. He expressed his solidarity with the JMMC and reiterated the commitment of Saudi Arabia to the success of the Declaration of Cooperation and cautioned against complacency.
He also reaffirmed the necessity of additional work to be undertaken by under-performing participating countries to bring their conformity levels to 100 per cent.
In August 2017, the OPEC and participating non-OPEC producing countries achieved an excellent conformity level of 116 per cent, the highest level since the start of the Declaration of Cooperation.
The JMMC expressed satisfaction with the overall results and steady progress made towards full conformity with the production adjustments, and encouraged all participating countries to continue on the path towards better conformity, for the benefit of producers and consumers alike.
The JMMC noted that while some participating producing countries have consistently performed beyond their voluntary production adjustments, others are yet to achieve 100 per cent conformity. Furthermore, the committee underscored the critical importance that all participating producing countries reach or exceed the 100 per cent conformity rate, and recommended that the JTC continue building on the progress made at the JTC Extraordinary Session held in Abu Dhabi on 8 August 2017, to support each participating country in their efforts towards achieving full conformity with the Declaration of Cooperation.
Commercial oil stocks in the OECD fell further in August and the difference to the latest five-year average has been reduced by 168 mmbbl since the beginning of this year, however, there remains another 170 mmbbl of stock overhang to be depleted, said JMMC.
