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OPEC, non-OPEC reach conformity level hits 106%

Tuesday, June 27
The OPEC and participating non-OPEC producing countries recorded the highest conformity ever with their voluntary adjustments in production, achieving a level of 106 percent, AzerNews reports citing the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC).

The Committee’s report for May 2017 reads that overall conformity levels by OPEC and participating non-OPEC producing countries have steadily increased from January to May 2017, exceeding 100 percent in both April and May to reach its highest level since January 2017.

“In May 2017, there was an increase of 4 percentage points over the April 2017 performance. This is a convincing demonstration of the willingness of all participating countries to continue their cooperation until the set goal is achieved,” said the message.

The next JMMC Meeting is scheduled to be held in St. Petersburg, Russia, on 24 July 2017.

The oil nations decided late last year on an output cut of 1.8 million barrels per day (bpd) to reduce global oil inventories. This may, they agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.

The reductions will be on the same terms as those agreed in November 2016.

Meanwhile, oil edged up from multi-month lows on Thursday, but prices remained under pressure from a supply glut that has persisted despite OPEC-led efforts to balance the market.

Brent crude futures were up 43 cents at $45.25 a barrel at 1229 GMT, after falling as low as $44.53 earlier in the day. They fell 2.6 percent in the previous session to $44.35, their lowest since November.

U.S. crude futures were up 30 cents at $42.83 a barrel, after also slipping earlier in the day. On Wednesday, they touched $42.05, their lowest intraday level since August 2016, Reuters reported.