ZCZC
BCN-23
OPEC-OIL-OUTPUT-DEAL
OPEC monitoring committee looks at possible relaxation of quotas amid
summer demand growth
JEDDAH, May 20, 2019 (BSS/TASS) – The Joint OPEC/Non-OPEC Ministerial
Monitoring Committee (JMMC) looked at possible mitigation of the compliance
terms of the oil output cuts deal in case of its extension on the backdrop of
the oil demand growth in the summer, Russian Energy Minister Alexander Novak
said on Sunday.
“We discussed the general balance of demand and supply. We agreed that such
an option as restoration is principally possible but we did not discuss to
which extent,” he said when asked whether the committee looked at getting
back to the 100% compliance.
“Possible relaxation of compliance terms stems from the demand in the
summer period. But there are many factors the decision will depend on. The
market situation, including what concerns the countries sanctions have been
imposed on, will be clear in a month. We will see the demand bearing in mind
the slowing oil demand,” he added.
Novak noted that recommendations on the future of the deal will be issued
after a thorough analysis of the global market, in June. No such
recommendations were issued at Sunday’s JMMC meeting. “We agreed that is is
necessary continue joint work in the second half of the year,” he said.
BSS/TASS/HR/1435