Page 4 - AfrOil Week 25

AfrOil COMMENTARY AfrOil

OPEC+ settles on compliance plan

The group has identified Nigeria as one of the biggest overproducers,

and two other African states went over the limit by more than 25,000 bpd

IN April, the Organization of Petroleum Export- “The committee stressed that the attainment
ing Countries (OPEC) and 10 allied states, of 100% conformity from all participating coun-
WHAT: known collectively as OPEC+, agreed to reduce tries is not only fair and equitable, but vital for
Nigeria and other oil production by a total of 9.7mn barrels per day the ongoing and timely rebalancing efforts and
quota-busters have (bpd) in May and June. helping deliver a sustainable oil market stability,”
been instructed to make Last week, though, OPEC’s Joint Ministerial the JMMC said after the online meeting.
additional cuts. Monitoring Committee (JMMC) determined
that the group had missed the May target by Compliance levels
WHY: 1.26mn bpd, or nearly 13%. Saudi Arabia reportedly spearheaded the push
OPEC+ is looking to The committee identified Iraq, Kazakhstan, for compliance, giving the states that overpro-
bring compliance levels Nigeria and Angola as the biggest offenders and duced in May just days to explain what steps
up to 100%. also faulted Azerbaijan, Brunei and Gabon for they would take to ensure compliance with oil
overproducing. production curbs.
WHAT NEXT: During a virtual meeting on June 18, JMMC Two of the miscreants, Iraq and Kazakhstan,
Brimming inventories and members determined that the countries respon- were quick to explain to the OPEC+ alliance
the threat of a new wave sible for these excess barrels would have to make how they intended to implement deeper output
of COVID-19 infections up for their lapses in full. They also discussed curbs in the coming months and make good
are weighing on oil methods for ensuring that OPEC+ countries on their quota violations in May. They submit-
prices. uphold their promises and work harder to toe ted their plans to the group before the June 22
the line going forward. deadline.

P4 www. NEWSBASE .com Week 25 24•June•2020