The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, urged oil-producing nations that produced above output targets in May-July to reduce further in August and September.
Held through a virtual conference, the 21st Meeting of the Joint Ministerial Monitoring Committee (JMMC) reviewed the monthly report prepared by OPEC’s joint technical committee (JTC).
The JMMC monitors OPEC+ supply cuts agreed earlier this year.
The group also predicted that oil demand could reach pre-Covid-19 levels by the year-end.
However, the JMMC felt that the speed of recovery seemed to be slower than expected and cautioned about a risk to fuel demand recovery if the Covid-19 crisis continues.
OPEC stated: “The committee emphasized that achieving 100% conformity from all participating countries in the declaration of cooperation (DoC) and compensating for the shortfalls in May, June and July 2020 is not only fair but vital for the ongoing rebalancing efforts and to help deliver long-term oil market stability.
“It instructed the JTC and the OPEC Secretariat to closely monitor and report to the JMMC on the implementation of the required compensation by the underperforming participating countries as stipulated in their plans.”
The committee noted that the participating OPEC and non-OPEC countries of the DoC delivered a significant performance, with overall conformity recorded at 97%.
US President Donald Trump served to secure an ‘unparalleled deal’ among the world’s major crude oil producers, but the deal hasn’t stopped the US oil market from bleeding, reported Bloomberg.