ministerial committee recommended cutting oil production for another nine months, just ahead of a Vienna meeting between members and allies to finalize the extension to a Dec. pact.
The Joint Ministerial Monitoring Committee set up to assess compliance rates-- composed of six OPEC and non-OPEC nations -- agreed in Vienna on Wednesday to support an extension through March 2018, according to a statement on the producer group’s website.
That added to the backing for another nine months of cuts from the most influential participants in the deal, including Russia, Saudi Arabia and Iraq.
The Organization of Petroleum Exporting Countries and 11 non-members agreed last year in December to cut output by as much as 1.8 million barrels a day. The supply reductions were initially intended to last six months from January, but the slower-than-expected decline in surplus fuel inventories prompted the group to consider an extension.
The committee said that as of April 2017, the OPEC and participating non-OPEC producing countries achieved conformity level of 102 per cent, an increase of 4 percentage points over the March 2017 performance.
“This is a demonstration of the commitment of participating countries to continue their cooperation until the achievement of the goal of rebalancing the market,” the statement said.
The JMMC discussed several scenarios for the cuts before settling on nine months, it said.
“JMMC should continue monitoring conformity levels as well as market conditions and immediate prospects, and recommend further adjustment actions, if deemed necessary.”
It will next meet in Russia on July 1.