Compliance with the Organization of the Petroleum Exporting Countries and allies’ (OPEC+) oil cuts has been assessed to be at a range of 95%-97% in July as demand shows signs of recovery, according to Reuters.
Compliance with the cuts by OPEC+ went from 95% to 97% if one includes Mexico, according to figures by a joint monitoring technical panel of key OPEC and non-OPEC producers, known as the JTC.
It is believed that the JTC is not recommending making any amendments to the current production agreement of 7.7 million barrels per day (mmbbl/d). Instead, the focus will be on adherence by countries such as Iraq, Nigeria, and Kazakhstan, all of whom showed poor compliance in the beginning and are now compensating by further cutting their production.
The JTC has called for “vigilance and close monitoring of the implementation of the compensation for overproduction.”