The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing nations called for vigilance by all participating countries underscoring the fragility of the market and significant uncertainties, particularly associated with oil demand.
OPEC oil producers and allies, like Russia, a grouping dubbed OPEC+, met on Wednesday to review compliance with oil cuts meant to support oil prices during the coronavirus pandemic.
Pointing to signs of gradually improving market conditions and the lessening of the gap between global oil demand and supply, the group warned against a slower pace of recovery than expected with growing risks of a prolonged wave of COVID-19.
OPEC and its allies forced oil nations pumping over production targets to cut further in August-September amid concerns of a sluggish recovery in oil demand, saying full conformity was vital for the ongoing rebalancing efforts and to help deliver long-term oil market stability.
OPEC+ agreed on June 15 to lower their current crude oil production cut level to 7.7 million barrels per day (bpd) starting from August, from the existing 9.7 million bpd.
The Joint Ministerial Monitoring Committee (JMMC), which closely watches how much crude oil each OPEC+ member produces, will hold its next meeting on Sept. 17.
By Sibel Morrow