The OPEC and non-OPEC joint ministerial monitoring committee (JMMC) on Monday allowed Libya and Nigeria to remain exempt from its output limit deal, asking the two countries to cooperate once their production levels are stabilized.
“(The JMMC) acknowledges the upside limitations of both countries beyond their current production levels,” OPEC said in a statement following a meeting of the committee.
According to the statement, Nigeria has agreed to cap its oil production once its recovery reaches an output volume of 1.8 million barrels per day (bpd).
The 14-member OPEC and 10 other oil producing countries met in Russia today to discuss conformity levels to its output deal, which runs until March 2018, and suggest future measures to stabilize global oil markets.
The committee recommended keeping the extension of the output deal beyond Q1 2018 “as an option,” if further action is required to rebalance demand and supply in the market.
“Oil demand is expected to increase significantly in the H2 2017 compared to H1 2017, with the growth reaching a level of 2 million bpd, which should sustain the inventory draws,” the statement said.
The JMMC said the participating OPEC and non-OPEC producing countries achieved a conformity level of 98 percent in June 2017.
The committee also called on participants who have failed full compliance to improve adherence and reach full conformity.
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