Iraq, Uae, Kazakhstan, Malaysia To Endure Oil Cut Deal
Iraq, the United Arab Emirates (UAE), Kazakhstan and Malaysia confirmed their commitments to the oil cut pact, OPEC announced following a two-day meeting in Abu Dhabi on August 7-8.
According to the statement, these countries all expressed their full support for the existing monitoring mechanism and their willingness to fully cooperate with the Joint OPEC-Non-OPEC Technical Committee (JTC) and the Joint OPEC/Non-OPEC Ministerial Monitoring Committee (JMMC) in the months ahead to achieve the goal of reaching full conformity.
In May 25, OPEC members agreed to extend their previous agreement by nine more months to March 2018 to lower oil output. At the meeting in Vienna, the members agreed to continue to lower oil production by 1.2 million barrels per day (bpd) down to 32.5 million bpd.
With non-OPEC participants, the oil production cut will see 1.8 million bpd, equal to 2 percent of global production. This is the organization’s second production cut in the last two years, and its second intervention in the global oil market since mid-2014 when oil prices began to fall.
The JTC held an extraordinary session in Abu Dhabi in the UAE, with some producing countries participating in the Declaration of Cooperation that committed participants to a substantial adjustment in crude oil production.
“The objective of the meetings was to discuss conformity with the voluntary production adjustments outlined in the extension of the Declaration, which became effective on July 1, 2017,” OPEC said.
At the most recent JMMC meeting in St. Petersburg, Russia on July 24, the JMMC instructed the JTC to hold additional technical level meetings with some OPEC and non-OPEC participating producing countries with the goal of further improving conformity levels to accelerate the rebalancing of the global oil market for the benefit of producers and consumers alike.
“Accordingly, meetings were held in order to further assess oil market developments with the UAE, Iraq, Kazakhstan and Malaysia, which presented their outlook and prospects for their respective production levels,” OPEC stated.
OPEC also explained that the discussions were conducted in a constructive atmosphere and proved fruitful.
“The conclusions reached with the countries at the meeting will help facilitate full conformity with the Declaration of Cooperation, which participating countries remain steadfast in their commitment to fulfill,” OPEC pointed out.
The next JTC meeting will take place on August 21, 2017 in Vienna, Austria.
By Huseyin Erdogan