Reuters reports three sources from the OPEC+ group as saying that compliance with the current production cuts was at 101% in April, indicating a good level of adherence among its members.
The evaluation was reviewed by the Joint Technical Committee (JTC) of OPEC+ before passing it on to the subsequent Joint Ministerial Monitoring Committee (JMMC) meeting. The JMMC meets monthly, and while it cannot itself modify production quotas, it can make recommendations for the next full OPEC+ meeting to consider. The next OPEC meeting is set for the end of this month, with a meeting of the larger OPEC+ group to take place the following day.
At its last meeting, the JMMC urged continued compliance, and it:
“reminded all participating countries of the necessity to be vigilant and proactive given the precarious market conditions and prospects.”
It is widely expected that the OPEC+ group will delay its plans to start tapering off its cuts at the start of next year, probably by somewhere between three and six months. As COVID-19 infections spiked in Europe, many significant economies again largely shut down, reducing the need for fuel and lubricant products from companies like Shell and Mobil and leaving the oil markets in a precarious situation. OPEC member Libya has also been restoring its large-scale production recently, with it now pumping over 1.2 million barrels per day of oil.
Some have even floated the idea of deepening the cuts, but Bloomberg report sources as saying this has not found much support among members.