OPEC and Russia-led group indicate the oil market continues to be oversupplied despite the countries cutting production by more than agreed in the first quarter.
Conformity of the countries in the pact to bring the oil market to balance, showed a conformity of 168 per cent in April, a record high figure, while average conformity since January reached 120 per cent, Organization of the Petroleum Exporting Countries (OPEC) said in a statement from the committee’s meeting on Sunday in Jeddah, Saudi Arabia.
“In analysing current oil market conditions and macroeconomic developments, the Committee also recognized that critical uncertainties remain, including ongoing trade negotiations, monetary policy developments and geopolitical challenges,” OPEC said.
The group will continue to monitor and analyse oil market developments and inventory projections in the coming weeks to make a recommendation for a June OPEC meeting in Vienna on whether production cuts should be extended for the second half of 2019.
Saudi Energy Minister Khalid al-Falih said on Sunday there was a consensus among OPEC and other non-OPEC producers to drive down crude inventories “gently”, Reuters reported.
“This second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining towards normal levels,” he told a news conference after a ministerial panel meeting.