An OPEC+ monitoring panel will meet next week to discuss the ongoing record production cuts to see how laggards in compliance are doing with making up for flouting quotas, but will not be making any decisions regarding the collective cut that was just extended through the end of July, five OPEC+ sources told Reuters on Friday.
The Joint Ministerial Monitoring Committee (JMMC), which includes members of OPEC and of the non-OPEC group of nations part of the deal, is meeting on Thursday, June 18, as part of a schedule of monthly meetings until the end of the year to discuss the situation on the oil market and the compliance with the cuts.
OPEC+ agreed on Saturday to extend the record production cuts of 9.7 million bpd by one month through the end of July, contingent on all countries in the pact complying 100 percent with their quotas and compensating for lack of compliance by overachieving in the cuts in July, August, and September.
The volatile oil market and the highly uncertain trajectory of global demand recovery has forced the OPEC+ group to have the JMMC hold meetings every month until the end of 2020, instead of ahead of every full OPEC+ meeting only.
This panel, however, cannot decide OPEC+ group's production policy, it can only make recommendations for consideration at the full OPEC and non-OPEC meetings, Reuters sources say.
Meanwhile, OPEC's second-largest producer, Iraq, which also happens to be the least compliant member of OPEC+, reiterated it is committed to the cuts.
Iraq's new Oil Minister, Ihsan Abdul Jabbar Ismaael, confirmed in a phone call with his Saudi counterpart, Prince Abdulaziz bin Salman, Iraq's "full commitment" to the cuts, OPEC said in a press release on Tuesday. Iraq confirms "its commitment to the voluntary oil production adjustments of June and July 2020, as well as the voluntary adjustments for the period following the end of July, despite the economic and financial challenges," Ismaael told the Saudi energy minister.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More