OPEC, non-OPEC to convene in Abu Dhabi Monday

CAIRO – 7 August 2017: The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC technical committee will hold a meeting in Abu Dhabi on Monday to discuss the states’ commitment to the output cut deal.

The convention will also consider the difficulties and challenges facing the OPEC and non-OPEC producers in achieving the highest levels of commitment to the agreement.
As per Reuters’ survey, the commitment to the oil output reduction deal did not exceed 84 percent in July, up from 77 percent in June, while Kuwait’s oil minister said in February that the level of commitment to the deal has reached 90 percent.

In November 2016, OPEC agreed to cut its own production by 1.2 million barrels per day (bpd) as of January 2017 for a six-month period, to reduce supply glut. The move was followed by the agreement of the non-OPEC producers to decrease their output by 558,000 bpd in December.

OPEC and non-OPEC members decided in May to extend the deal for output cuts by 1.8 million bpd for additional nine months until March 2018.

OPEC’s oil exports rose in July to hit 26.11 million bpd, with a hike of 370,000 bpd, mostly coming from Nigeria.

Moreover, OPEC oil output hit its 2017 high in July, after Libya and Nigeria, who are exempted from OPEC's deal, recorded a production of more than one million bpd and 1.6 million bpd, respectively.

According to Russia's largest oil producer Rosneft, Russia’s crude production leveled up 11.1 percent year-on-year in the second quarter.

Oil prices inched down on Monday, sliding away from nine-week highs, as worries lingered over high production from OPEC.

The average oil barrel price has stood at $50 lately. The price declined from $115 to less than $30 before rising again, but at lower rates than those reached in 2014.