Crude-oil prices headed modestly higher on Thursday as the energy market turned its focus to an OPEC-led meeting of the Joint Ministerial Monitoring Committee, or JMMC.
The JMMC, which monitors compliance with OPEC output quotas, is holdings its gathering via video-conference and although the group is not usually a catalyst for crude price moves, it could provide guidance on adherence to the global pact to limit production.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed to extend cuts of 9.7 million barrels per day to July and monitor compliance to those reduction efforts monthly.
Thus far, OPEC+ compliance in May was 87%, two OPEC+, reported Reuters, citing two unnamed sources.
“The meeting of course can also go sideways. Members that are not fully complying with their production cut quota are always a sticky point for the big guns of the alliance,” wrote Louise Dickson, oil markets analyst at Rystad Energy in a daily research note.
“Also, some members may argue that taken the road fuel and [International Energy Agency] demand signals, it may be time to bring back some production,” the analyst wrote.
West Texas Intermediate crude for July delivery CL.1, +0.44% CLN20, +0.44%, the U.S. benchmark, edged up 17 cents, or 0.5%, to trade at $38.12 a barrel on the New York Mercantile Exchange, after falling 1.1% on Wednesday.
Global benchmark Brent oil for August delivery BRNQ20, +0.78% picked up 34 cents, or 0.8%, at $41.05, a barrel on ICE Futures Europe, after the contract fell 0.6% in the previous session.