OPEC ready to monitor oil market situation in 2H 2019, says Saudi Arabia’s minister

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BAKU, Mar 18, 2019 (BSS/TASS) – OPEC is ready to continue monitoring the
situation on the oil market in the second half of 2019 as well, Minister of
Energy, Industry and Mineral Resources Khalid al-Falih told a press
conference on Sunday.

According to the minister, since the reserves are strengthening,
particularly given that the US reserves remain at a high level, the joint
efforts of OPEC+ will be continued until June.

Russia’s Energy Minister Alexander Novak said that countries participating
in the OPEC+ agreement would discuss possible further decisions for the
second half of the year regarding the crude production cut deal in May-June.

Compliance rate

OPEC participating countries may reach the 100% compliance rate of the
crude production cut agreement already in March 2019, Minister of Energy,
Industry and Mineral Resources Khalid al-Falih said.

According to the minister, the current compliance rate is around 90%. Those
countries that have not reached the 100% compliance rate have assured him
that their results would improve in the near future, he added.
Earlier on Sunday a meeting of the OPEC technical committee was held in
Baku before the ministerial monitoring committee due on March 18.

In December 2018, OPEC+ countries decided to cut production by 1.2 mln
barrels per day from the level of October 2018. It is planned that OPEC
nations will reduce output by 800,000 barrels per day, while the remaining
countries – by 400,000 barrels. In particular, Russia will cut production by
228,000 barrels per day. The deal covers the first half of 2019 and may be
revised in April.

Earlier on Sunday a meeting of the OPEC+ technical committee was held in
Baku before the ministerial monitoring committee due on March 18.

In December 2018, OPEC+ countries decided to cut production by 1.2 mln
barrels per day from the level of October 2018. It is planned that OPEC
nations will reduce output by 800,000 barrels per day, while the remaining
countries – by 400,000 barrels. In particular, Russia will cut production by
228,000 barrels per day. The deal covers the first half of 2019 and may be
revised in April.