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OPEC plans to publish this week the quotas for individual countries under the new OPEC/non-OPEC production cut deal agreed upon on December 7 and in force since January 1, an OPEC source told Russian news agency TASS on Monday.
The publishing of the quotas for each country could help overcome the skepticism in the market regarding the resolve of OPEC and its allies to implement the decision made in early December, according to TASS’s source.
During the current period of the cuts, until June 2019, OPEC and allies will remove a total of 1.195 million bpd off the market and keep production at 43.874 million bpd, according to TASS.
OPEC will shave off 812,000 bpd, while the non-OPEC countries part of the deal will reduce their combined production by 383,000 bpd to 17.937 million. Russia will cut production by 230,000 bpd to 11.191 million bpd, taking most of the non-OPEC cuts. Within OPEC, Saudi Arabia will be slashing production by 322,000 bpd to 10.31 million bpd, according to TASS.
Reports that OPEC will publish individual country quotas first emerged in December, two weeks after the cartel and its allies decided to remove a combined 1.2 million bpd off the market in the first half of 2019 to stem the oil price rout and rebalance the market.
Initial reports just after the meeting in Vienna in early December suggested that OPEC and its allies would not be unveiling who is cutting how much under the new deal.
But two weeks later, Reuters quoted OPEC’s Secretary General Mohammad Barkindo as saying in a letter:
“In the interests of openness and transparency, and to support market sentiment and confidence, it is vital to make these production adjustments publicly available.”
“I would urge Your Excellencies to kindly make positive announcements reinstating your countries’ commitment to implementing the agreed decisions. This is also vital to underpin trust in our decisions and to buttress ourselves from any naysayers who may doubt our commitment,” the letter obtained by Reuters says.
By Tsvetana Paraskova
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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.