Organization of Petroleum Exporting Countries (OPEC) members and its allies have been urged to boost compliance with oil output cuts aimed at supporting prices.
According to the details, Energy Minister Prince Abdulaziz Bin Salman, while chairing the 21st Joint Ministerial Monitoring Committee (JMMC) meeting via videoconference urged (OPEC) members and allies to boost compliance with oil output cuts aimed at supporting prices.
Prince Abdul Aziz and Co-Chair Alexander Novak, minister of energy of the Russian Federation, reviewed the compliance levels of the OPEC member countries with the Joint Technical Committee (JTC) stressing the ongoing positive contributions of the members that’ll allow for a rebalancing of the global oil.
Prince Abdulaziz prior to the start of the meeting said “Based on the average projections of various institutions, including OPEC, EIA, and the IEA, it is estimated that the world will reach about 97% of pre-pandemic oil demand during the fourth quarter — which is a big recovery from the huge falls in April and May,”
OPEC welcomed the significant performance in overall conformity for participating OPEC and non-OPEC countries, which was recorded at 97% in July 2020, including Mexico as per the secondary sources.
The members reaffirmed their commitment to achieving full and timely conformity.
The meeting observed that there are some signs of gradually improving market conditions, including the inventory build in July 2020 being reversed and the lessening of the gap between global oil demand and supply.
Nevertheless, the pace of recovery appeared to be slower than anticipated with growing risks of a prolonged wave of COVID-19.