The Organization of Petroleum Exporting Countries (OPEC) said it was pleased with the efforts to cooperate and comply with the joint declaration of OPEC and non-OPEC producers, indicating that the countries participating in the declaration of cooperation achieved similar levels of 121% in June.
The committee reviewed the latest market developments and made recommendations with regard to monitoring the overall compliance levels of the countries participating in the June 2018 Declaration of Cooperation.
OPEC also pointed out the need to continue monitoring the situation and developments of the oil market closely, in order to improve the stability of the market and producers and consumers and the global economy as a whole.
The Organization also indicated its intention to seek a general consensus level of at least 100%, with monthly meetings in attendance or remotely, to monitor the market closely and recommend appropriate measures and decisions. It was pointed out that the next meeting of the Ministerial Committee to control the reduction of production will be on August 20 next, noting that the voluntary adjustments to production of about 1.8 million barrels per day, which was implemented over the course of 18 months, came as part of efforts to accelerate the stability of the global oil market.
In a related context, crude oil prices have tended to fall in a series of consecutive declines, due mainly to increased production from OPEC and non-OPEC countries, as well as continuing changes in the US crude supply levels. The decline also boosted data showing an unexpected increase in US oil inventories, in line with weak data on demand growth.
Oil prices fell on Thursday after official data showed a surprise increase in US crude inventories and record high US production. Brent crude oil futures fell 21 cents or 0.3 percent to trade at $72.69 a barrel. WTI fell about 7 cents, or 0.1 percent, to $68.69 a barrel.
The US Energy Information Administration said on Wednesday that US crude oil production was 11 million barrels per day, for the first time. Production has increased by about 1 million bpd since last November, thanks to rapid increases in rock drilling.
The betting environment was boosted by a sharp rise in US crude stocks, with inventories rising 5.8 million barrels last week, while a 3.6 million barrel drop was expected. The US Energy Agency announced on Wednesday that the country’s commercial inventories rose by 5.8 million barrels in the week ending July 13, contrary to experts’ forecasts of a 3.6 million barrel decline.
OPEC crude basket fell to $69.98 a barrel on Wednesday, compared to $70.38 a barrel the previous day.