Africa: 179th Opec Conference Meeting – Several Decisions Adopted to Ensure Stability of Oil Market

Algiers — Several decisions were unanimously adopted at the 179th meeting of the Conference of the Organization of Petroleum Exporting Countries (OPEC) and the 11th OPEC and Non-OPEC ministerial meeting held Saturday to stabilize the oil market, the Energy Ministry said in a statement.

Taking into account the current fundamentals and the recent prospects of the international oil market, the countries participating in the proceedings of the 11th ministerial meeting of Opep and non-Opep countries and the 179th Opep Ministerial Conference, under the chairmanship of Minister of Energy and current Chairman of OPEC Conference Mohamed Arkab, have decided to take several decisions aimed at ensuring the stability of the black gold prices, the same source said.

These include a reduction in oil production of around 9.7 million barrels per day (mb/d) during June 2020, a drop of 9.6 mb/d during July 2020 as well as a cut of 7.7 mb/d due to take place from 1 August to the end of December 2020.

The participants in these two ministerial conferences held by videoconference also agreed to reduce production by 5.8 mb/d from 1 January 2021 to April 2022, the Ministry of Energy’s press release states.

At the end of the work of these meetings, it was also decided to adopt the compensation mechanism for those countries which were unable to achieve full compliance in May and June with the agreement of 12 April last. The countries concerned were invited to make up the gaps in July, August and September 2020.

The other decision endorsed by the Opec and non-Opec countries is the decision to convene the Joint Ministerial Monitoring Committee (JMMC) every month to monitor the implementation of the oil supply reduction agreement.