OPEC expects more compliance with oil pact after Abu Dhabi meeting

The United Arab Emirates (UAE), Iraq, Kazakhstan and Malaysia have promised “full support” and cooperation towards last year’s production cut agreement, which aims to cut oversupply and shore up crude prices, OPEC said in a statement on Tuesday.

The four countries, who have lagged below their committed cuts, discussed output levels with a panel comprising Saudi Arabia, Kuwait, Russia and OPEC officials from Vienna, during a two-day meeting of joint OPEC and non-OPEC technical committee (JTC) in Abu Dhabi.

“Discussions were conducted in a constructive atmosphere and proved fruitful,” the statement said.

“The UAE, Iraq, Kazakhstan, and Malaysia all expressed their full support for the existing monitoring mechanism and their willingness to fully cooperate with the JTC and JMMC in the months ahead in order to achieve the goal of reaching full conformity,” it added.

The statement did not specify what measures will be taken to ensure greater compliance.

The OPEC and other major producers, including Russia, had agreed last December to cut production by 1.8 million barrels per day (bpd) until March 2018, with the aim to rebalance global oil markets.

Last month, the joint ministerial monitoring committee (JMMC) that is watching the compliance to the agreement said the OPEC and non-OPEC participants achieved a conformity level of 98 percent in June 2017.

The JMMC had also called on participants who have failed full compliance to improve adherence and reach full conformity.

The JTC is next scheduled to meet on August 21 in Vienna, Austria.