Global oil output cut compliance rate surges to 116 pct - watchdog

VIENNA, Nov 29 (KUNA) -- Kuwaiti Oil Minister and Chairman of the Joint OPEC and non-OPEC Ministerial Monitoring Committee (JMMC), which oversees producers' compliance with output cut agreement, Essam Al-Marzouq, announced a remarkable increase in compliance rates in October.
"The conformity rate in October was 116 percent which is better than that of September, which stood at 104 percent," Al-Marzouq told KUNA and Kuwait TV following the meeting of the JMMC, held in Vienna Wednesday.
He expressed great satisfaction with the outcome of JMMC meeting and the great conformity levels to the production adjustments of OPEC and non-OPEC producers as per the "Declaration of Cooperation" agreement to cut oil output to help restore balance to the global oil market.
Al-Marzouq, also Kuwait's minister of electricity and water, stated that the JMMC would submit a report to the OPEC and non-OPEC oil ministers who would convene in Vienna Thursday on the different scenarios of the global oil market performance during the past period.
In response to a question on the options available before the ministers in their meeting, he noted that that the options include extending the current production cut agreement, which expires by end of March 2018, by additional six or nine months.
He projected that that the output cut agreement would extended to the end of 2018.
On the current oil price level of USD 60 a barrel, the Kuwaiti Oil Minister argued that OPEC always believed that price levels were determined by the basic market factors such as supply and demand.
"On our part, we have to reduce production to reach the aspired stability levels on the global oil market," he said.
"Prices are reacting to the commitment rate of the signatory countries," he said, stressing that OPEC does not set oil prices.
Minister Al-Marzouq disclosed that that several countries including Chad and Ecuador have been invited to the meeting of oil cut agreement signatories.
Kuwaiti oil minister lauded Russia's cooperation with OPEC and high-level of commitment to the agreement.
The impact of this cooperation was felt strongly on the oil market, he said, noting that Russia commitment was reflected positively on the accelerated pace of restoring price stability. (pickup previous) amg.ibi