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MOSCOW (MRC) -- Iraq and
Kazakhstan have submitted their plans to the OPEC+ alliance on how they will
implement deeper oil production cuts in the coming months, following through on
pledges to make good on violating their quotas in May, reported S&P Global.
However, Nigeria,
Angola and other members who also overproduced have yet to declare their plans
and have been given until June 22 to submit them, according to a monitoring
committee tasked with tracking compliance with the OPEC+ production cut accord
and assessing market conditions.
"The committee stressed that the
attainment of 100% conformity from all participating countries is not only fair
and equitable, but vital for the ongoing and timely rebalancing efforts and
helping deliver a sustainable oil market stability," the OPEC+ Joint Ministerial
Monitoring Committee said in a draft statement seen by S&P Global Platts
after meeting online June 18.
The statement did not detail the exact
schedule of cuts for Iraq and Kazakhstan. The deal calls for the compensatory
cuts to be made over July-September. Ministers for both countries did not
immediately respond to requests for comment.
Kazakh energy minister
Nurlan Nogayev had said June 9 that his country pumped 3.13 million barrels over
its quota over May 1-12.
Iraq produced nearly 600,000 b/d over its quota
in May, according to Platts latest survey of OPEC output, and oil minister Ihsan
Ismaael said June 15 that crude exports in June had already been slashed in an
effort to comply with the deal.
The OPEC+ alliance's overall compliance
with the cuts was 87% for May, the committee said.
OPEC and 10 allies are
in the midst of a 9.7 million b/d production cut agreement aimed at speeding the
oil market's recovery from the coronavirus pandemic. The cuts are set to run
through July, with the JMMC meeting monthly to adjust the quotas as
needed.
No decisions were made on August cut levels, delegates said, with
the market outlook still uncertain.
"We are committed to a common goal --
balancing the global oil market," Russian energy minister Alexander Novak said
in his opening remarks at the JMMC meeting ."Everyone understands that we are
not yet close to reaching a sustainable recovery."
Saudi Arabia, the UAE,
Kuwait and Oman have agreed to implement an additional voluntary 1.2 million b/d
cut for June but have said they do not plan to continue those in
July.
The nine-country JMMC is co-chaired by Saudi Arabia and Russia, the
OPEC+ coalition's largest producers.
We remind that, as MRC informed
before, in late May, 2020, Borealis said it will not proceed with the
development of a multi-billion-dollar integrated steam cracker and polyethylene
(PE) project in Kazakhstan. “The decision to discontinue this project is based
on a thorough assessment of all aspects of the prospective venture and impacted
by the effects of the COVID-19 (coronavirus disease 2019) pandemic as well as
the increased uncertainty of future market assumptions,” Borealis
states.
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 721,290 tonnes in the first four
month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear
low density polyethylene (LLDPE) shipments grew partially because of the
increased capacity utilisation at ZapSibNeftekhim. |
