OPEC's Mohammad Barkindo satisfied with output cuts compliance

The Secretary General of OPEC, Mohammad Barkindo, expressed his satisfaction with the level of compliance achieved with the production cuts agreed upon by OPEC and non-OPEC oil producers. Speaking at the Nigeria Oil and Gas Conference in Abuja, Barkindo highlighted the historical significance of the current agreement, which includes 11 non-OPEC member countries led by Russia. This collaboration marks the first time that non-OPEC nations have joined forces with OPEC in a concerted effort to reduce oil supply by 1.8 million barrels per day from January to June 2017. In addition to the production cuts, both groups have established a Joint Ministerial Monitoring Committee to oversee the implementation of the agreement, with Russia and Oman playing key roles on the committee. While acknowledging the teething problems faced by some non-OPEC nations in the initial stages of compliance, Barkindo remained optimistic about their commitment to the agreement. He emphasized the importance of reaching 100% conformity to the agreed-upon production levels to stabilize the oil market effectively. As the current focus remains on the period up to June, Barkindo underscored the necessity of continuing the agreement beyond that timeframe to ensure sustained stability in the market. Looking ahead, he highlighted the upcoming meeting scheduled for May 25th in Vienna, where both OPEC and non-OPEC countries will review the progress made and assess the ongoing efforts to rebalance the market. The key objective is to reduce the excessive stock levels that have accumulated over the years, aiming to bring them in line with the industry's five-year average. While discussing the potential extension of the agreement, Barkindo refrained from making preemptive statements, indicating that decisions would be based on the outcomes of upcoming meetings. The Joint Ministerial Monitoring Committee has established a sub-technical committee that convenes monthly to evaluate the implementation progress, with a recent meeting held in Vienna. The GMMC is set to meet in Kuwait in the near future, with the collective results of these gatherings to be presented at the joint conference between OPEC and non-OPEC on May 25th. The collaborative efforts between the two groups demonstrate a commitment to continuous monitoring and evaluation, underscoring a proactive approach to addressing any challenges that may arise. As Barkindo remains cautiously optimistic about the future trajectory of the agreement, the oil market watches closely to see how the collective efforts of OPEC and non-OPEC nations will impact global oil prices and market stability.