The Organization of Petroleum Exporting Countries (OPEC) and its sister members have asked the Joint Technical Committee (JTC) to monitor underperforming members in the extended production cuts.
The body also requests that all underperforming nations including Nigeria, Iraq and others submit their plans for implementation of the “required compensation” for the month of June to the Secretariat by the end of the month.
This was revealed in the recent 20th virtual meeting of the Joint Ministerial Monitoring Committee (JMMC). The body also commended Gulf nations like Saudi Arabia, Kuwait and the United Arab Emirates for making voluntary cuts to their production to keep the price stable. Oil production reached its lowest in nearly 30 years due to the production cuts of 9.6 million barrels.
Meanwhile, the Organization plans to reduce its production cut from 9.6 million barrels a day to 7.7 million barrels, OPEC expects the increase in supply to be offset by countries like Nigeria that did not meet full compliance on production cuts. Nigeria will join Iraq and Angola by engaging in a further 842,000 barrels a day of cuts through September.
OPEC agrees that a full 100% conformity for all members is fair deal, that is important to move the body to a unified voice in the future and deliver on long term goals. Adding that despite partial lockdowns, the recoveries in demand is clear. Adding that the extra supply from the ease in productio9n would be consumed locally be oil exporters as their economies reopen for business.
OPEC agrees that the new compensation policy was agreed by the nation affected and would lead to deeper level of adjustments.