Joint ministerial monitoring committee for oil producers meets today

22 Sep 2017 01:32 PM

The joint ministerial monitoring committee of oil producers participating in the cut-off agreement meets today, consisting of OPEC members: Algeria / Venezuela / Kuwait and non-OPEC members: Russia / Oman. Although this committee was formed only to monitor the compliance of the countries participating in the agreement to the production reduction process, discussions are likely to dominate the possibility of extending the period of production cuts and / or deepening production cuts.

It is unlikely that an agreement on extension or deepening of production cuts will be reached during this meeting, so we will have to wait for the next OPEC summit scheduled for Nov. 30.

Most oil ministers who spoke this week said the extension of the current deal would be the main point of discussion, although the Kuwaiti oil minister suggested that the extension of production cuts should not be considered at the next meeting. For his part, the Iraqi oil minister said that some believe that the cuts should extend beyond the month of March by about 3, 4 or 6 months or perhaps until the end of 2018, and some believe that there should be another reduction by 1% such as Ecuador and Iraq.

On the other hand, the response of Novak, Russia's oil minister that it is best to focus on the implementation of the agreement now instead of changing the standards.

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