The Joint Ministerial Oversight Committee of the Organization of the Petroleum Exporting Countries (OPEC) and its allies (opec) has called on member countries to maintain a status quo for their current production quotas. The 13 OPEC countries produced 23.39 million .b/d of crude oil in July, according to a survey of 1.08 million .b/d compared to June. According to Platts` calculations, the ten members with quotas under the OPEC agreement received 94% of their promised production cuts. LONDON (Bloomberg) –OPEC – has agreed to gradually ease its oil production cuts next year, giving a fragile market more time to absorb the extra supply. As part of the agreement, countries were asked to reduce production by 9.7 million barrels per day from August to reach a production target of 7.7 million barrels per day, AFP reported. London – OPEC`s production discipline fell in July when Saudi Arabia-led Gulf members ended their voluntary production cuts, while some countries that struggled to meet their quotas continued to pump above their ceilings, according to the latest S-P Global Platts survey. OPEC production will increase further in August, with the coalition increasing its quotas by about 2 million b/d pending an increase in global oil demand, although some of the additional production can be offset by so-called offsetting cuts promised by members who overproduced their quotas in May, June and July. The production quotas, which will be maintained, were approved by the Opec member countries in June 2020. In the meantime, Nigeria believes that part of its production should be considered a condensate that is not subject to quotas.
During the meeting, the JMMC reaffirmed the critical importance of OPEC countries if they stick to full compliance and compensate for excess oil produced as soon as possible. The decision was communicated by the JMMC at its 22nd meeting, which was held as part of a virtual conference. Saudi Arabia has long called on other members to bear the burden of production cuts more equitably. Russia, which has often been a laggard in the past but has maintained its commitments this time, also insists that any extension be conditional on its compliance. Their quota was increased to 8.99 million .b/d between August and the end of the year, in accordance with the terms of the OPEC agreement. Participating OPEC and non-OPEC countries reached 102% compliance with their crude oil production limits in August 2020 It is unlikely that the OPEC meeting will take place on Thursday, one person said. Without guarantees of respect, Moscow and Riyadh have warned that the talks scheduled for 9-10 June could not take place either, according to the people. The Committee stated that this is a critical issue in the efforts already made to reorient and enable long-term stability of the oil market.
Under the current OPEC agreement, supply cuts are expected to be eased in July to about 7.7 million barrels per day, Saudi Arabia, OPEC`s largest producer, increased production by 870,000 million b/d to 8.45 million b/d, but remained below its ceiling of 8.49 million b/d, as the kingdom voluntarily reduced its June volumes to accelerate the reorientation of the oil market. According to OPEC, even Mexico, according to secondary sources, had met production targets. Iraq, Nigeria, Angola and Kazakhstan, in particular, have been the subject of extensive scrutiny by their OPEC partners due to overproduction.