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Opec recommends 6-month extension of oil output cuts

Producers had agreed to cut production by 1.8 mn bpd for six months from Jan 1 to support market

Reuters 

Opec recommends 6-month extension of oil output cuts

An and non-technical committee recommended that producers extend a global deal to cut supplies for another six months from June, a source familiar with the matter said, in an effort to clear a glut of crude that has weighed on prices.

The Organization of the Petroleum Exporting Countries (Opec), and other producers originally agreed to cut production by 1.8 million barrels per day (bpd) for six months from Jan. 1 to support the market.

Compliance numbers were also reviewed at the meeting in Vienna on Friday that comprised of officials from countries monitoring adherence to agreed output levels, namely members Kuwait, Venezuela, and non-and Oman.

Overall compliance with pledged cutbacks stood at 98 per cent in March, a source said. Two sources said the rate in March represented an increase from February’s level. prices still declined on Friday, with Brent crude trading below $52 a barrel on concerns that increasing US production and high inventories would thwart the efforts by and its allies to curb supplies.

The committee’s recommendation that the supply cut deal be extended was not a surprise, after ministers from top exporter Saudi Arabia and gave a clear signal on Thursday that producers planned to prolong the accord.

Russian Energy Minister Alexander Novak said on Friday a decision on extending the pact had not yet been taken, but would be discussed with on May 24. ministers plus their non-counterparts are scheduled to meet on May 25.

The meeting also discussed Opec’s own compliance, which it put at 103 per cent, in line with figures published in Opec’s most recent monthly report.

The panel, which met at Opec’s Vienna headquarters, is the Joint Technical Committee (JTC) established in January to monitor adherence to supply cuts.

Top producer Saudi Arabia is also a member of the JTC in its capacity as 2017 president.

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Opec recommends 6-month extension of oil output cuts

Producers had agreed to cut production by 1.8 mn bpd for six months from Jan 1 to support market

Producers had agreed to cut production by 1.8 mn bpd for six months from Jan 1 to support market
An and non-technical committee recommended that producers extend a global deal to cut supplies for another six months from June, a source familiar with the matter said, in an effort to clear a glut of crude that has weighed on prices.

The Organization of the Petroleum Exporting Countries (Opec), and other producers originally agreed to cut production by 1.8 million barrels per day (bpd) for six months from Jan. 1 to support the market.

Compliance numbers were also reviewed at the meeting in Vienna on Friday that comprised of officials from countries monitoring adherence to agreed output levels, namely members Kuwait, Venezuela, and non-and Oman.

Overall compliance with pledged cutbacks stood at 98 per cent in March, a source said. Two sources said the rate in March represented an increase from February’s level. prices still declined on Friday, with Brent crude trading below $52 a barrel on concerns that increasing US production and high inventories would thwart the efforts by and its allies to curb supplies.

The committee’s recommendation that the supply cut deal be extended was not a surprise, after ministers from top exporter Saudi Arabia and gave a clear signal on Thursday that producers planned to prolong the accord.

Russian Energy Minister Alexander Novak said on Friday a decision on extending the pact had not yet been taken, but would be discussed with on May 24. ministers plus their non-counterparts are scheduled to meet on May 25.

The meeting also discussed Opec’s own compliance, which it put at 103 per cent, in line with figures published in Opec’s most recent monthly report.

The panel, which met at Opec’s Vienna headquarters, is the Joint Technical Committee (JTC) established in January to monitor adherence to supply cuts.

Top producer Saudi Arabia is also a member of the JTC in its capacity as 2017 president.

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Business Standard
177 22

Opec recommends 6-month extension of oil output cuts

Producers had agreed to cut production by 1.8 mn bpd for six months from Jan 1 to support market

An and non-technical committee recommended that producers extend a global deal to cut supplies for another six months from June, a source familiar with the matter said, in an effort to clear a glut of crude that has weighed on prices.

The Organization of the Petroleum Exporting Countries (Opec), and other producers originally agreed to cut production by 1.8 million barrels per day (bpd) for six months from Jan. 1 to support the market.

Compliance numbers were also reviewed at the meeting in Vienna on Friday that comprised of officials from countries monitoring adherence to agreed output levels, namely members Kuwait, Venezuela, and non-and Oman.

Overall compliance with pledged cutbacks stood at 98 per cent in March, a source said. Two sources said the rate in March represented an increase from February’s level. prices still declined on Friday, with Brent crude trading below $52 a barrel on concerns that increasing US production and high inventories would thwart the efforts by and its allies to curb supplies.

The committee’s recommendation that the supply cut deal be extended was not a surprise, after ministers from top exporter Saudi Arabia and gave a clear signal on Thursday that producers planned to prolong the accord.

Russian Energy Minister Alexander Novak said on Friday a decision on extending the pact had not yet been taken, but would be discussed with on May 24. ministers plus their non-counterparts are scheduled to meet on May 25.

The meeting also discussed Opec’s own compliance, which it put at 103 per cent, in line with figures published in Opec’s most recent monthly report.

The panel, which met at Opec’s Vienna headquarters, is the Joint Technical Committee (JTC) established in January to monitor adherence to supply cuts.

Top producer Saudi Arabia is also a member of the JTC in its capacity as 2017 president.

image
Business Standard
177 22