OPEC reveals new voluntary production adjustments (TABLE)

Baku, Azerbaijan, Jan.18

By Leman Zeynalova – Trend:

The overall conformity level of OPEC since the beginning of the ‘Declaration of Cooperation’ in January 2017 is well above 100 percent, coming in at 116 percent, Trend reports citing a message from the cartel.

The Joint Ministerial Monitoring Committee (JMMC) has expressed its utmost satisfaction with the steady and robust achievements of the two-year old ‘Declaration of Cooperation’ between OPEC and participating non-OPEC oil producing countries.

The JMMC noted that countries participating in the ‘Declaration of Cooperation’ achieved an overall conformity level in November 2018 of slightly below 100 percent, hitting 98 percent for the month.

"It is evident that significant progress has been made towards the goal set at the 4th OPEC and non-OPEC Ministerial Meeting of 23 June 2018, whereby countries agreed to strive to adhere to the overall conformity level, voluntarily adjusted to 100 percent, as of 1 July 2018 for the remaining duration of 2018," said JMMC.

The Committee confirmed the new voluntary production adjustments effective as of 1st of January 2019 for an initial period of six months, based on the unanimous decisions taken at the 175th Meeting of the OPEC Conference and the 5th OPEC and non-OPEC Ministerial Meeting on 7 December 2018.

Table: Adjustment based on the 175th Meeting of the OPEC Conference and the 5th OPEC and non‐OPEC Ministerial Meeting, effective as of January 2019, tb/d

* Reference production is October 2018 except for Kuwait, Azerbaijan and Kazakhstan

Notes:

• Libya, Iran, I.R., and Venezuela exempted.

• Kuwait based on September 2018 production level.

• Azerbaijan based on September 2018 production level.

• Kazakhstan based on November 2018 production level.

These voluntary production adjustments will continue to be monitored by the JMMC on a monthly basis, ably supported by the Joint Technical Committee and the OPEC Secretariat, in an open and transparent manner.

The JMMC calls on all participating countries of the ‘Declaration of Cooperation’ to redouble their efforts in the full and timely implementation of the supply adjustments to ensure that the oil market remains in balance in 2019.

The thirteenth Meeting of the JMMC will take place in Baku, Azerbaijan on 18 March 2019.

The Declaration of Cooperation constitutes an unprecedented milestone in the history of the Organization of the Petroleum Exporting Countries (OPEC). For the first time ever, the Member Countries of OPEC coordinated with 11 non-OPEC oil producing countries in a concerted effort to accelerate the stabilization of the global oil market through voluntary production adjustments, which amounted to approximately 1.8 million barrels per day.

The Declaration was an outcome of the Joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016 and was effective for an initial period of six months. The Second Joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on 25 May 2017, decided to extend the voluntary production adjustments for another nine months commencing 1 July 2017. The sustainable oil market stability sought by the Declaration is in the interests of producers, consumers, investors and the global economy at large. At the third joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on 30 November 2017, it was agreed to amend the Declaration of Cooperation so that it will take effect for the entirety of 2018.

The core principles of transparency, equity and fairness which have underpinned the Declaration of Cooperation infuse all aspects of OPEC’s interactions with its non-OPEC oil producing partners, including cooperation at a research and technical level.

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