"Decision valid until 30 April 2022" - OPEC
OPEC Adjusts Overall Crude Oil Production
The Organization of Petroleum Producing Countries, OPEC has rolled out new adjustment for over all crude oil production among members.
At the the 9th OPEC and non-OPEC Ministerial Meeting, held in Vienna, Austria on Friday,Cooperationnde decision was in view of the current fundamentals and the consensus market perspectives.
The adjustment include among other things, that “The Participating Countries:
1. Reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on 2 July 2019.
2. Adjust downwards their overall crude oil production by 10.0 mb/d, starting on 1 May 2020, for an initial period of two months that concludes on 30 June 2020. For the subsequent period of 6 months, from 1 July 2020 to 31 December 2020, the total adjustment agreed will be 8.0 mb/d. It will be followed by a 6.0 mb/d adjustment for a period of 16 months, from 1 January 2021 to 30 April 2022. The distribution of the adjustments is detailed in the tables attached. The baseline for the calculation of the adjustments is the oil production of October 2018, except for the Kingdom of Saudi Arabia and The Russian Federation, both with the same baseline level of 11.0 mb/d. The decision signed today will be valid until 30 April 2022, however, the extension of the decision will be reviewed during December 2021.”
OPEC however said the agreement was conditional on the consent of Mexico, including volunteered adjustment.
The organization called major producers to contribute to the efforts aimed at stabilizing the market.
“Participating Countries will meet on 10 June 2020 via webinar, to determine further actions, as needed to balance the market,” it says.
Meanwhile, OPEC has also reaffirmed and extended the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership, to closely review general market conditions, oil production levels and the level of conformity with the Declaration of Cooperation and the new adjustment, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat.
It said that,”the Declaration of Cooperation conformity is to be monitored considering crude oil production, based on the information from secondary sources, according to the methodology applied for OPEC Member Countries.