The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing nations on Monday called for further compliance with the group's production cut decision to ease oversupply concerns.
OPEC oil producers and allies, like Russia, a grouping dubbed OPEC+, met on Monday for the 23rd meeting of the Joint Ministerial Monitoring Committee (JMMC) via videoconference to review compliance with oil cuts aimed at supporting oil prices during the coronavirus pandemic.
The committee reiterated full commitment to the two-year road map of OPEC's Declaration of Cooperation (DoC) to restore market balance for an extended period through December.
'In this manner, all participating countries were encouraged to increase their efforts to compensate for overproduced volumes in order to achieve the objective of market rebalancing and avoid undue delay in the process,' the committee said in a statement released after the meeting.
OPEC+ is currently cutting output by 7.7 million barrels per day up to December to support prices, as the coronavirus crisis continues to hamper demand.
The committee welcomed the positive performance in the overall conformity level for participating OPEC and non-OPEC countries, at 102%, which is considered the highest since May 2020, excluding the voluntary adjustments in June 2020 by Saudi Arabia, Kuwait and the United Arab Emirates.
Moreover, the committee said in September that the countries compensated a total of 249,000 barrels per day to make up for previously overproduced volumes.
Reiterating its call for those countries that failed to comply with the OPEC+ compensation cuts to swiftly implement their commitments, the committee underlined that 'underperformance is not only unfair to other performing countries, but is also detrimental to oil market rebalancing.'
The committee highlighted the slow economic recovery caused by the resurgence of COVID-19 cases in major economies, particularly in the Americas, Asia and Europe. It urged for caution and constructive action for all participating countries in the face of precarious market conditions and prospects.
In his remarks before the meeting, Russian Energy Minister Alexander Novak pointed to 'uncertainties' noting the second wave of the pandemic influenced the oil demand recovery.
Algerian Energy Minister Abdelmadjid Attar, for his part, underlined the need to remain focused on the obligations and commitments made by participating countries in the DoC 'as stability is gradually returning to the global oil market.'
The next meetings of the Joint Technical Committee and the JMMC are scheduled for Nov. 16 and 17, respectively.
By Sibel Morrow