OPEC+ panel makes no recommendation on supply cuts -sources

OPEC+ technical experts made no recommendation on further extending a record oil supply cut in talks on Wednesday and decided to focus on compliance of laggards in the deal ahead of ministerial talks on Thursday, OPEC+ sources said.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed to a record supply cut that started on May 1 to support prices and demand hit by the coronavirus crisis. This week’s meetings are part of an OPEC+ effort to review the impact of the cut and hear from countries yet to deliver their share in full, such as Iraq, on how they plan to comply.

“It is going well,” a source said of Wednesday’s meeting, which is being held virtually. Both Iraq and Kazakhstan are expected to present their plans for production cuts and compensation for overproduction to a meeting by OPEC+ ministerial committee, known as the JMMC, on Thursday, one of the OPEC+ sources said.

OPEC+ compliance with the existing crude production cuts in May was 87%, two OPEC+ sources said on Wednesday. The supply pact involves OPEC+ cutting output by 9.7 million barrels per day in May and June. The group agreed on June 6 to extend the cut for another month, a decision OPEC+ said earlier on Wednesday the market had taken well.