OPEC reaches record conformity level
By Trend:
OPEC and non-OPEC countries, participating in the deal to curb oil output have reached a record conformity level of 152 percent, said the Joint Ministerial Monitoring Committee (JMMC).
“The 24 OPEC and non-OPEC producing countries participating in the voluntary production adjustments continue to maintain outstanding levels of conformity to the terms of the historic ‘Declaration of Cooperation’ of December 2016,” said the JMMC.
The JMMC reported that participating countries have achieved a conformity level of 152 percent during the fourth month of the second year of the Declaration of Cooperation.
“This demonstrates the commitment of participating countries to
the restoration of market stability, which is intended to serve the
long term interests of producers, consumers and the global
economy,” said OPEC.
The JMMC acknowledged the rising concerns expressed by some
importing and consuming countries regarding potential shortages in
the global oil market and requested the JTC, supported by the OPEC
Secretariat to continue to closely monitor the oil market and to
report any fundamental changes.
The JMMC Committee reaffirmed participating countries’
commitment to the stability of the market and energy security of
the global economy.
Furthermore, the JMMC reviewed the JTC’s discussion regarding
alternative and/or adjusted metrics to measure the impact of the
Declaration of Cooperation and concluded that measuring market
stability through a single metric is not sufficient and therefore a
more comprehensive set of metrics is required.
Committee members expressed satisfaction with overall results, but
noted that individual country performance was not uniform. They
once again highlighted the importance of even performance across
all countries.
The JMMC was established following OPEC’s 171st Ministerial
Conference Decision of 30 November 2016, and the subsequent
‘Declaration of Cooperation’ made at the joint OPEC/non-OPEC
Producing Countries’ Ministerial Meeting held on 10 December 2016.
Through the Declaration, 11 (now 10) non-OPEC oil producing
countries and OPEC’s 13 (now 14) Member Countries decided on
voluntary production adjustments of around 1.8 million barrels per
day as part of efforts to accelerate the stabilization of the
global oil market.
The 9th meeting of the JMMC will take place in Vienna on June 21
2018.