OPEC+ monitoring committee pushes back meeting to Aug. 19

The OPEC+ Joint Ministerial Monitoring Committee has pushed back its next online meeting by a day to Aug. 19, due to a request from Russia, according to officials.

The committee, co-chaired by Saudi Arabia and Russia, meets monthly and is tasked with adjudicating compliance with OPEC+ production quotas and analyzing market conditions.

It can make recommendations for changes to the OPEC+ production cut agreement, although Russian energy minister Alexander Novak said none were likely for the upcoming meeting.

“No sharp movements or additional proposals are on the table,” Novak told reporters Aug. 13, according to the Prime news agency. The OPEC+ alliance in May instituted historic 9.7 million b/d production cuts — nearly 10% of pre-coronavirus pandemic demand — in response to the market collapse as a result of the health crisis.

The cuts eased to 7.7 million b/d in August and are scheduled to scale back further to 5.8 million b/d starting in 2021 through April 2022.

Under the deal, countries that failed to meet their quotas in May, June and July will be required to make so-called “compensation cuts” beyond their quotas in August and beyond, offsetting some of the production rise from other members.

Iraq has already said it will implement a 400,000 b/d compensation cut in August and September.

OPEC+ quota compliance fell to 96% in July, from 106% in June, with its collective output increasing by 1.10 million b/d, according to S&P Global Platts’ latest survey of the alliance’s production.