Opec+ deal compliance at 107pc in June: Delegates

The 23-nation Opec+ coalition averaged a 107pc compliance rate with its production deal in June, according to two Opec+ delegates, which is in line with Argus' assessment.

The group said it was 87pc compliant in May with its commitment to cut 9.7mn b/d of output from a largely October 2018 baseline.

Delegates said the 10 Opec members participating in the agreement met 112pc of their pledges last month, which the organisation affirmed today in its latest Monthly Oil Market Report. Opec conformity was 84pc in May.

Non-Opec participants were 99pc compliant in June, up from 92pc in May, according to the delegates.

Argus estimated Opec members were 113pc compliant with their production obligations in June, and pegged non-Opec conformity at 98pc for that month.

The improved figures follow deeper voluntary cuts from Saudi Arabia, Kuwait and the UAE last month, and a Saudi-led crackdown on undercompliance that prompted stragglers to present plans on how they will compensate for producing above their May quotas.

The Opec+ Joint Technical Committee (JTC) that monitors oil market conditions to inform the Opec+ output strategy is currently meeting. The group's Joint Ministerial Monitoring Committee (JMMC), which observes and finalises compliance data, will assemble tomorrow at 14:00 Vienna time.

By Nader Itayim and Ruxandra Iordache