The Organization of Petroleum Exporting Countries, OPEC, and its sister members have asked the Joint Technical Committee, JTC, to monitor underperforming members in the extended production cuts.
The body also requested that all underperforming nations including Nigeria, Iraq, and others submit their plans for implementation of the “required compensation” for the month of June to the Secretariat by the end of the month.
This was revealed in the recent 20th virtual meeting of the Joint Ministerial Monitoring Committee, JMMC. The body also commended Gulf nations like Saudi Arabia, Kuwait, and the United Arab Emirates for making voluntary cuts to their production to keep the price stable. Oil production reached its lowest in nearly 30 years due to the production cuts of 9.6 million barrels.
Meanwhile, the Organization plans to reduce its production cut from 9.6 million barrels a day to 7.7 million barrels, OPEC expects the increase in supply to be offset by countries like Nigeria that did not meet full compliance on production cuts. Nigeria will join Iraq and Angola by engaging in a further 842,000 barrels a day of cuts through September.
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OPEC agreed that a full 100% conformity for all members is a fair deal, that it is important to move the body to a unified voice in the future and deliver on long term goals adding that despite partial lockdowns, the recoveries in demand are clear and the extra supply from the ease in production would be consumed locally by oil exporters as their economies reopen for business.
OPEC agreed that the new compensation policy was agreed to by the nations affected and would lead to deeper level of adjustments.
Editor: Ena Agbanoma
