The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) reported on Friday that OPEC and non-OPEC countries are on the right track towards full conformity with their adjustments in production but there is still room for improvement.
The Joint OPEC-Non-OPEC Technical Committee (JTC) held its inaugural meeting on February 22 at the OPEC Secretariat in Vienna where it discussed issues related to the conformity with the production level cuts.
The cuts set out by OPEC in November 2016 were the first since 2008 and the voluntary adjustments by a number of non-OPEC countries were set by their Declaration of Cooperation the following month .
The JTC, a technical sub-Committee of the JMMC, considered presentations by the OPEC Secretariat on current market developments and deliberated on various technical issues in regards to reporting and conformity.
JTC’s report was submitted to the JMMC which expressed its satisfaction with the progress made towards full conformity with the production adjustments.
According to the JTC report for January 2017, the OPEC and non-OPEC producers achieved a conformity level of 86 per cent.
Earlier this month, the International Energy Agency (IEA) said in its Oil Market Report that estimated OPEC production in January was at 32.1 mb/d and that the cuts achieved a record initial compliance rate of 90 percent.
The JMMC noted on Friday that there is still room for improvement to reach 100 percent conformity, and, in this regard, urged all those involved to press on towards full and timely conformity.
The second meeting of the JTC is scheduled to take place in Vienna in March, which will be followed by the next JMMC Meeting to be held in Kuwait on March 25-26.