Baku, Azerbaijan, Sept.12
By Leman Zeynalova – Trend:
Following its 16th Meeting, which took place on 12 September 2019, in Abu Dhabi, the United Arab Emirates, the Joint Ministerial Monitoring Committee (JMMC) has underscored the critical need for continued commitment to the ‘Declaration of Cooperation’ (DoC) in support of oil market stability on a sustainable basis, Trend reports citing OPEC.
Conformity with the voluntary production adjustments remains high, 136 percent in the month of August. However, the JMMC reemphasized the core principles underpinning the DoC, namely, equity, fairness and transparency, and urged all participating countries to intensify their efforts in pursuit of full and timely conformity with their voluntary production adjustments.
All participating countries present, particularly those who are yet to reach full conformity with their adjustments, were unequivocal in providing steadfast assurances of their determination to achieve at least 100 percent conformity for the remainder of the year. Those countries who have over-conformed also reiterated their voluntary contribution. Resultantly, overall conformity will be brought to record levels.
The JMMC observed the recent decline in OECD commercial stock levels, particularly in the US, although they remain above the five-year average. It was also noted that all major benchmarks are now in backwardation.
Furthermore, the Committee analyzed the range of critical uncertainties facing the global economy in 2019 and 2020, including trade-related tensions, monetary policies and other macroeconomic factors.
The JMMC urged continued vigilance in monitoring oil market conditions ahead of the Ministerial Meetings in early December.
The next meeting of the JMMC is scheduled to take place on 4 December 2019 at the OPEC Secretariat in Vienna, Austria.
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