MOSCOW (MRC) -- The OPEC+ Joint Ministerial Monitoring Committee has pushed back its next online meeting by a day to Aug. 19, due to a request from Russia, reported S&P Global with reference to officials.
The committee, co-chaired by Saudi Arabia and Russia, meets monthly and is tasked with adjudicating compliance with OPEC+ production quotas and analyzing market conditions.
It can make recommendations for changes to the OPEC+ production cut agreement, although Russian energy minister Alexander Novak said none were likely for the upcoming meeting.
"No sharp movements or additional proposals are on the table," Novak told reporters Aug. 13, according to the Prime news agency.
The OPEC+ alliance in May instituted historic 9.7 million b/d production cuts - nearly 10% of pre-coronavirus pandemic demand - in response to the market collapse as a result of the health crisis.
The cuts eased to 7.7 million b/d in August and are scheduled to scale back further to 5.8 million b/d starting in 2021 through April 2022.
Under the deal, countries that failed to meet their quotas in May, June and July will be required to make so-called "compensation cuts" beyond their quotas in August and beyond, offsetting some of the production rise from other members.
Iraq has already said it will implement a 400,000 b/d compensation cut in August and September.
OPEC+ quota compliance fell to 96% in July, from 106% in June, with its collective output increasing by 1.10 million b/d, according to S&P Global Platts' latest survey of the alliance's production.
As MRC informed earlier, Russia’s Energy Ministry said in early August that the country’s oil output in July was unchanged from levels seen in June, in line with an OPEC+ agreement. The ministry added that its level of compliance with the deal in July was close that recorded in June, when it stood at 99%.
We remind that data collected and tabulated by the American Chemistry Council (ACC) show that due to growth in China, global chemicals production rose by 0.6 percent in June, an improvement from the 0.5 percent decline in May, Production has been declining throughout this year, with the last monthly gain occurring in December 2019. During June, chemical production fell in major regions except Asia-Pacific. Headline global production was off 7.2 percent year-over-year (Y/Y) on a three-month moving average (3MMA) basis and was off 7.4 percent from the peak December level. Global output stood at 109.8 percent of its average 2012 levels.
At the same time, Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-June. June production of polymers in primary form fell to 791,000 tonnes from 820,000 tonnes in May partially because of a scheduled shutdown for maintenance at ZapSibNeftekhim. Output of polymers in primary form totalled 4,900,000 tonnes over the stated period, up by 14.8% year on year.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC