The Organization of the Petroleum Exporting Countries, OPEC, has set September 2021 as deadline for its defaulting members and non-OPEC countries participating in the ongoing production cuts to fully adhere to their compensation cuts.
The notice was issued following extension requests by participating countries at the last 15th and 16th Ministerial and non-Ministerial meeting.
A document sent to participating countries obtained by SweetcrudeReports revealed that the ministers, during the meeting, stressed the importance of all countries ensuring full compliance and making up for previous adjustment shortfalls during an extended compensation period, running till the end of September 2021.
Overall conformity to the production adjustments was put at 115 percent in March.
Participating countries on May 1, 2020, began adjusting production by 9.7 million barrels per day, mb/d, as the global economy battled economic repercussions of the COVID-19 lockdowns and stringent health measures.
These adjustments amounted to nearly ten percent of pre-pandemic global demand.
They were subsequently amended, based on market conditions, beginning in August 2020 and January 2021, followed by the decision for additional gradual adjustments beginning on May 1, 2021.
Source: SweetcrudeReports
