OPEC+ technical experts made no recommendation on further extending a record oil supply cut in talks June 17 and decided to focus on compliance of laggards in the deal ahead of ministerial talks June 18, OPEC+ sources said.
OPEC and allies, known as OPEC+, agreed to a record supply cut that started May 1 to support prices and demand hit by the coronavirus crisis.
This week’s meetings are part of an OPEC+ effort to review the impact of the cut and hear from countries yet to deliver their share in full, such as Iraq, on how they plan to comply.
“It is going well,” a source said of the June 17 meeting, which is being held virtually.
Iraq and Kazakhstan are expected to present their plans for production cuts and compensation for overproduction to a meeting by OPEC+ ministerial committee, known as the JMMC, on June 18, one of the OPEC+ sources said.
OPEC+ compliance with the existing crude production cuts in May was 87%, two OPEC+ sources said June 17.
The supply pact involves OPEC+ cutting output by 9.7 MMbbl/d in May and June. The group agreed on June 6 to extend the cut for another month, a decision OPEC said earlier on June 17 the market had taken well.
Recommended Reading
E&P Highlights: Sept. 9, 2024
2024-09-09 - Here’s a roundup of the latest E&P headlines, with Talos Energy announcing a new discovery and Trillion Energy achieving gas production from a revitalized field.
Now, the Uinta: Drillers are Taking Utah’s Oily Stacked Pay Horizontal, at Last
2024-10-04 - Recently unconstrained by new rail capacity, operators are now putting laterals into the oily, western side of this long-producing basin that comes with little associated gas and little water, making it compete with the Permian Basin.
Exxon Plans Longest 20,000-Ft Wells on Pioneer’s Midland Asset
2024-11-04 - Exxon Mobil has already drilled some of the longest wells in the New Mexico Delaware Basin. Now, the Texas-based supermajor looks to go longer on Pioneer’s Midland Basin asset.
E&P Highlights: Sept. 23, 2024
2024-09-23 - Here's a roundup of the latest E&P headlines, including Turkey receiving its first floating LNG platform and a partnership between SLB and Aramco.
Northern’s O’Grady: Most of ‘Best’ Acres ‘Already Been Bought’
2024-10-24 - Adding new-well inventory going forward will require “exploration or other creative measures,” said Nick O’Grady, whose Northern Oil and Gas holds interests in 10,000 Lower 48 wells.