Opec+ still “has work to do” in terms of addressing compensatory cuts by the alliance's oil producers but the group is committed in its efforts to stabilise the energy markets, Saudi Arabia's energy minister said on Monday.
“There is still some work to do in terms of compensation,” Prince Abdulaziz bin Salman said in opening remarks during the alliance’s joint ministerial monitoring committee meeting.
But he stressed that Opec+, which is led by Saudi Arabia and Russia, will "do what’s necessary” to ensure stability.
“Nobody in the market should be in any doubt as to our commitment and our intent,” Prince Abdulaziz said.
The producer alliance's joint ministerial monitoring committee on Monday made no recommendations to change its current policy to taper production cuts from early next year.
Opec+ has been cutting back 7.7 million barrels per day from August to help balance a record plunge in demand and prices earlier this year. The group agreed to historic curbs of 9.7m bpd between May and July after the pandemic-induced mobility restrictions forced energy demand to plummet to record lows.
The group said in its latest meeting that it achieved an overall conformity level of 102 per cent, which is the highest since May, excluding voluntary commitments made by Saudi Arabia, the UAE and Kuwait.
Laggard producers within the group also made up for shortfalls in September, by drawing back a total of 249,000 bpd for earlier overproduction.
“We have been promised by participating countries that they will increase their efforts to compensate in October and during the months of November and December for them to fulfil all of their commitments, including the volume not compensated for in September,” Prince Abdulaziz said.
The committee urged other countries that failed to fully comply to "swiftly implement their commitments, including their compensation plan".
"Under-performance is not only unfair to other performing countries, but it [is] also detrimental to oil market rebalancing," the Opec+ communique read.
Brent, the international benchmark was down 0.42 per cent, trading at $42.84 per barrel at 9.21pm UAE time. West Texas Intermediate, which tracks US crude grades, was up 0.2 per cent, trading at $40.96 per barrel.
Russia's energy minister cautioned the markets that despite the alliance's achievement to ensure stability, there was much turbulence ahead for the industry.
"Despite the stability, which we're seeing today, it is clear that the market is much more volatile. The virus has already caused a loss or damage to many sectors of the economy," Alexander Novak told delegates at the JMMC.
The alliance will convene its next JMCC on November 16 and 17, respectively.