Opec+ vows to gets tough on non-compliance
The Opec and non-Opec Joint Ministerial Monitoring Committee (JMMC) concluded its 16th meeting in Abu Dhabi today with a pledge from non-compliant members to fully observe their production commitments, Argus Media reported.
The group of producer countries, known collectively as Opec+, pegged overall compliance with its December 2018 production restraint agreement at 136pc for August.
Opec delegates told Argus that the JMMC committee — which reviews market fundamentals to make recommendations on production strategy to Opec+ — has found it challenging to coax some members of the producers' alliance to honour their commitments.
Iraq and Nigeria have struggled to meet their agreed quotas but both countries have now promised to be compliant with their targets by October, with the full support of their governments.
Asked about the possibility of deepening the existing deal to cut a combined 1.2mn b/d until the end of March 2020, Oman's oil minister Mohammed bin Hamad al-Rumhy said such a scenario will be discussed when the group meets in Vienna in December.
"I think that will be discussed further in December. But there was a presentation and the outlook is not very good for 2020. The demand is projected to be a bit slow by the IEA," he said.
The JMMC will next meet on 4 December, a day ahead of the Opec ministerial meeting in Vienna.