Crunch point for OPEC, with decisions to be made. Many would have written the organisation off, but the bond with
Russia has strengthened and so, too, has the credibility of OPEC.
At the Press Conference on Friday, following the Meeting, HE Suhail Mohamed Al Mazrouei, Minister of Energy & Industry of the United Arab Emirates and Head of its Delegation, announced that the Conference had agreed that, as compliance towards the cut in OPEC output of 1.2mbpd, agreed with effect from December 2016, had been exceeded by 50%, that OPEC would correct the imbalance and reduce compliance from 150% to 100%.
Now, the overall cut, including non-OPEC, was actually 1.8mbpd, but there was some uncertainty that the over- compliance covered the full 1.8mbpd and not just the 1.2m. So, taking the position in May, we understood that OPEC would put back around 900,000bpd into the market.