OPEC leader, Saudi Arabia, said on Monday the group would quickly address weak compliance with output cuts by some OPEC states and would monitor rising production from Nigeria and Libya, which have been exempted from the curbs.
OPEC has agreed with several non-OPEC producers led by Russia to cut oil output by a combined 1.8 million bpd from January 2017 until the end of March. But OPEC states Libya and Nigeria were exempted to help them recover from years of unrest.
The deal to curb output propelled crude prices above $58 a barrel in January but they have since slipped back to a $45 to $50 range as the effort to drain global inventories has taken longer than expected.
Rising output from US shale producers has offset the impact of the output curbs, as has climbing production from Libya and Nigeria.
“We must acknowledge that the market has turned bearish with several key factors driving these sentiments,” Saudi Energy Minister Khalid al-Falih told a meeting of a committee that monitors the deal between OPEC and non-OPEC states.
Alongside Saudi Arabia, the committee known as the JMMC includes Russia, Kuwait, Venezuela, Algeria and Oman. It has the power to recommend measures to other producers involved in the pact, depending on market conditions.
JMMC is due to announce its position later on Monday.
Falih said that weaker compliance with cuts by some OPEC members and a rise in OPEC exports were helping soften prices.
Saudi Arabia and Kuwait have cut more than they pledged but others, such as the United Arab Emirates and Iraq, have shown relatively weak adherence to the limits.
“Although conformity with the production agreement remains at high levels, some countries continue to lag which is a concern we must address head on,” Falih said.
“Exports have now become the key matrix to financial markets and we need to find a way to reconcile credible exports data with production data,” he added.

Saudi calls OPEC members to stick to limits, sees oil demand up

Russia’s Energy Minister Alexander Novak, Saudi Arabia’s Energy Minister and OPEC conference president Khalid al-Falih, and OPEC Secretary General Mohammad Barkindo attend an OPEC meeting (File Photo: Reuters)
Reuters, Dubai
Monday 24 July 2017
Last Update: Wednesday, 20 May 2020 KSA 09:54 - GMT 06:54
DAY | WEEK |
-
17967 Views Loud explosion heard in Saudi Arabia's capital Riyadh
-
4340 Views COVID-19 vaccine might be needed every year: UAE health spokesperson
-
4037 Views Sinopharm Peru vaccine trial volunteer dies of COVID-19 pneumonia, received placebo
-
3876 Views Israel talks tough on Iran, Hezbollah, Hamas: Our response to be extreme in next war
-
3206 Views US Senate Republicans unite behind failed efforts to halt Trump impeachment trial
-
1628 Views Coronavirus: US pharmacist tries to spoil COVID-19 vaccines, pleads guilty
-
24480 Views Coronavirus: Dubai temporarily postpones Pfizer vaccine campaign amid global shortage
-
19920 Views Saudi Arabia’s PIF to invest 3 trillion riyals over next 10 years: Crown Prince
-
17967 Views Loud explosion heard in Saudi Arabia's capital Riyadh
-
11211 Views The American University of Beirut’s battle for survival
-
9609 Views Full moon to align directly above Kaaba in Mecca on Jan. 28
-
8718 Views Coronavirus: Dubai restaurants offer discounts for vaccinated diners
SHOW MORE