OPEC: Oil output cuts only two percent off target in March

The Joint Ministerial Monitoring Committee (JMMC) reported on Friday that OPEC and non-OPEC countries have continued their high level of conformity with their voluntary adjustments in production.

JMMC’s statement was based on the report of the Joint OPEC-Non-OPEC Technical Committee (JTC) for the month of March.

The Committee expressed its satisfaction with the progress made towards full conformity with the voluntary production adjustments and encouraged all participating countries to press on towards 100 percent conformity.

As of March 2017, the OPEC and participating non-­OPEC countries achieved a conformity level of 98 percent, 4 percent higher than in February.

According to the JMMC, this demonstrates the significant willingness of all participating countries to continue their cooperation.

The JMMC was established in November 2016. OPEC and 11 non-OPEC oil producing countries cooperated in a concerted effort to accelerate the stabilization of the global oil market through voluntary adjustments in combined production of around 1.8 million barrels per day.

The resulting declaration, which came into effect on January 1, 2017, is for six months and is extendable for an additional six months, depending on the status of supply and demand, including global inventories.

The next JMMC Meeting will be held in Vienna on May 27 and will be followed by the joint OPEC/non-OPEC conference during which the decision on extending the period of the production management will be taken.

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