Middle-east Arab News Opinion | Asharq Al-awsat

Six Secondary Sources to Monitor OPEC Cut - ASHARQ AL-AWSAT English Archive
Select Page

Khobar- December would be the last month the oil market would be upholding OPEC production rates entry given by the organization’s General Secretariat. As of January 2017, the multinational organization’s oil production will be traced down by secondary sources.

The OPEC agreement stipulates that member states will rely on secondary sources to monitor production, rather than official figures relayed. The clause did not come to Iraq’s liking, given that it relentlessly tried to persuade other countries not to reference secondary sources.

OPEC cites six market sources for keeping track of production rate of its members– S&P Global Platts and Argus Media, which are recognized as the two most significant price reporting agencies for the oil market, are among the sources.

Rival markets are also counted on, like the Paris-based International Energy Agency (IEA), and the U.S. Energy Information Administration (EIA).

Two other sources would be oil & gas consulting companies and the Petroleum Intelligence Weekly (PIW).

On the other hand, the Kuwait Petroleum Corporation (KPC) announced that coordination for its oil production cut as of early January 2017 is going according to plan, and that it would soon inform its clients about an oil supply drop, the State Kuwait news agency reported.

The cut comes in line with Kuwait’s commitment to the Resolution 171 adopted by OPEC during its ministerial meeting held on November 30th, 2016, stipulating that each member state would stick to a specific oil output cut, the KPC said in a release.

But, the resolution stated that some OPEC member states like Libya and Nigeria could not be involved due to their current conditions.

OPEC and non-OPEC oil ministers are set to come together in Vienna on Saturday in order to shore up OPEC’s oil supply cap, the KPC added.

Oil prices have surged by around eight dollars per barrel since the OPEC cut resolution was announced on November 30th.