Joint Ministerial Monitoring Committee of oil producers and its allies (OPEC+) reported 87 percent of their productions have been cut during May - Photo by OPEC Secretariat

JAKARTA (TheInsiderStories) – Joint Ministerial Monitoring Committee (JMMC) of oil producers and its allies (OPEC+) reported 87 percent of their productions have been cut during May. They also appreciated the additional voluntary contributions totaling 1.2 million barrels per day made by Saudi Arabia, the Uni Arab Emirates, Kuwait and Oman in June.

The information given by Prince Abdul Aziz Bin Salman, Saudi Arabia’ minister of energy and co-chair Alexander Novak, minister of energy of the Russian Federation after a videoconference, on Thursday, (06/18). The committee reiterated the critical role that the ‘Declaration of Cooperation’ (DoC) continues to play in supporting oil market stability and economic recovery to face of the COVID- 19 pandemic shock and the subsequent severe global economic downturn.

It also recalled the historic decision taken by all participating countries in the DoC at the OPEC+ ministerial meeting on April 12, to adjust downwards overall crude oil production and the decisions taken at the recent OPEC+ ministerial meeting on June 6. This included extending the first phase of the production adjustments by a further month until July 31.

The JMCC also will subscribing to the concept of compensation by those countries who were unable to reach full conformity in May and June, to accommodate the underperformed volumes in July, August and September. In addition, their already agreed the production adjustment for such months, said the chair.

The committee emphasized the critical importance of adhering to full conformity, and compensating the overproduced volumes in the months of May and June until September. It said, Iraq and Kazakhstan have already submitted their compensation schedules, and agreed to give other underperforming participants, which have not yet submitted final plans until next Monday (06/22).

Furthermore, the Committee mandated the Secretariat to reach out to all the underperforming Participating Countries to submit their schedules for compensation by the above mentioned date. Joint Technical Committee and JMCC will continue their monthly meetings, with the next scheduled on July 14 and 15, respectively.

On Thursday, West Texas Intermediate crude for July delivery climbed 2.3 percent to US$38.84 a barrel on the New York Mercantile Exchange. And, Brent Crude Oil for August delivery rose 2 percent at $41.51 per barrel on ICE Futures Europe.

Written by Staff Editor, Email: theinsiderstories@gmail.com