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OPEC, Russia and allies, known as OPEC+, agreed on Saturday to
keep production cuts of 9.7 million barrels per day, or 10% of
pre-coronavirus world demand, until the end of July. The
reduction has helped oil prices to more than double since April.
To step up consultations on the effectiveness of the agreement,
OPEC+ also agreed that a panel called the Joint Ministerial
Monitoring Committee or JMMC, will meet monthly until the end of
2020. Its first such meeting is on Thursday next week.
While this is a more frequent cycle of meetings than in the
past, the JMMC's remit is still to advise OPEC+, the OPEC+
sources said. This means any decision to extend the supply
reduction agreement would not be immediate.
"It's an advisory committee that can make recommendations," one
of the OPEC+ sources said of the JMMC's role, declining to be
identified by name.
The JMMC is composed of OPEC members Algeria, Kuwait, Venezuela,
Nigeria, Iraq, United Arab Emirates and Saudi Arabia, plus
non-OPEC countries Russia and Kazakhstan.
One of the issues the JMMC will look at is whether countries
that have not delivered their share of the cutbacks could do
more. OPEC+ on Saturday demanded countries such as Nigeria and
Iraq compensate with extra cuts in July to September.
The day before the JMMC meets, a lower-level group called the
Joint Technical Committee will gather. Both meetings, like the
ministerial talks held on Saturday, will be virtual.
(Editing by Jane Merriman)
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