Opec+ laggards get 4 days to deliver cuts plan: Update

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The Opec+ group's Joint Ministerial Monitoring Committee (JMMC) has given member countries that produced above their May quotas until next week to submit their crude output reduction plans.

At today's meeting of the JMMC, Iraq and Kazakhstan presented their strategies for bringing crude production in line with their quotas this month and next, as well as plans to compensate in July-September for overproducing last month.

During the meeting Saudi Arabia took a hard line with member countries that have yet to submit reduction plans, including Nigeria, Angola and Congo (Brazzaville), an Opec+ delegate said. Members have until 22 June to present their strategies to achieve compliance, according to a communique issued after the meeting.

The Opec secretariat postponed a JMMC press conference planned for today to early next week, after all countries have handed in their crude reduction plans.

"The committee stressed that the attainment of 100pc 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 communique said.

Kazakhstan was 71pc compliant in May, energy minister Nurlan Nogayev said. He reiterated that Kazakhstan will compensate in August-September for overproducing in May, but did not elaborate.

The Opec+ group set out to reduce its collective crude output by 9.7mn b/d last month, largely from an October 2018 baseline. It is targeting the same cut this month, followed by a 9.6mn b/d reduction in July. The group agreed that non-compliant members will be required to make up for any surplus production in May and June with additional cuts in July-September. The Opec+ coalition achieved an overall compliance rate of 87pc last month.

The Joint Technical Committee (JTC), which studies market fundamentals, and JMMC will next meet on 14 and 15 July.

By Nader Itayim, Rowena Edwards and Daniyar Mussaev