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.
In this context, the 11th meeting of the Opec + countries reaffirmed the continuing commitment of the producer countries signatories of the Declaration of Cooperation (DoC) to a “stable market, in the mutual interest of the producer countries, the efficient and secure supply of oil to consumers and in the interest of the world economy.”
The 11th meeting welcomed on this occasion the additional production adjustments announced by Saudi Arabia (1 million b/d), the United Arab Emirates (100,000 b/d), Kuwait (80,000 b/d) and Oman (10,000 b/d). 000 to 15 000 b/ j) expected during the current month, as well as announcements of voluntary adjustments expressed by other producing countries, such as Norway and Canada.
Calling on all participants to remain fully committed to efforts to balance and stabilize the market, the 11th meeting of the Opep+ also noted that world oil demand is expected to contract by about 9 mb/d for the whole of 2020.
In this respect, it was stressed that the oil production adjustments in May, as well as the gradual relaxation of many containment measures following the COVID-19 pandemic throughout the world had contributed to a “cautious” recovery in demand and “stability” in the oil market.
Nevertheless, the consolidation of this gradual recovery will require continued commitment and intensified efforts on the part of the participating countries signatories to the Declaration of Cooperation and all major producing countries, stressed the participants at both ministerial meetings.
Announcing that the next meeting of the Joint Ministerial Follow-up Committee (JMMC) is scheduled for 18 June, the Opec and non-Opec countries agreed to hold a ministerial meeting in Vienna on 1 December.