By Wael Mahdi
OPEC and its non-OPEC allies reiterated that all options to rebalance the oil market “are left open” as the producers announced the highest level of compliance with their agreement to curtail production.
The joint ministerial committee responsible for monitoring the agreement, known as JMMC, said on Saturday that producing countries achieved a record-high conformity level on their voluntary production adjustments at 120% in September, according to a statement on the website of the Organization of Petroleum Exporting Countries.
“The JMMC will continue to monitor other factors in the oil market and their influence on the ongoing market rebalancing process,” it said. “All options are left open to ensure that every effort is made to rebalance the market for the benefit of all.”
The 24 oil-producing nations that agreed in December to cut 1.8 million barrels a day of their production, initially for a six-month period, have already extended their deal once — by nine months until the end of March 2018 — in an effort to lower crude inventories.
The JMMC said in the statement that commercial oil stocks in the OECD countries fell further in September and now stand at 159 million barrels above their latest five-year average. The stocks have been reduced by 178 million barrels since the beginning of this year, JMMC said.
OPEC and its allies are scheduled to meet in Vienna on November 30, while JMMC said in the statement its next meeting is scheduled for the preceding day.