Implementation of OPEC, non-OPEC commitments required to cut oil production

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ALGIERS-Minister of Energy Mohamed Arkab stressed on Thursday, in Abu Dhabi, the need for a strict application of the commitments made by the OPEC and non-OPEC countries to reduce their oil production in accordance with the cooperation agreement in force until the end of 2019, said Thursday the Ministry of Energy in a statement.

The discussions between the ministers focused on the strict application of the OPEC / non OPEC agreement, to reduce their production of 1, 2 million barrels a day, in order to reach the objective of stabilizing the oil market, ” said the Minister at the end of the 16th meeting of the Joint Ministerial Monitoring Committee of the Opec-non Opec (JMMC) agreement, held in Abu Dhabi (United Arab Emirates).

He also affirmed that “Algeria is committed to participate, fully, in any approach whose objective is to stabilize the market and ensure its equilibrium”.

“This meeting was very important and allowed the ministers to raise the level of appreciable engagement of members except Nigeria, Kazakhstan and Iraq,” said Arkab.

At the JMMC meeting, member countries agreed to continue their efforts to achieve market balance and stabilization for the interest of producers and consumers, the statement added.

“Ministers agreed to encourage countries that exceeded their level of production to comply with the agreement during the month of October,” said the Ministry of Energy.

In December 2018, OPEC had agreed with ten non-OPEC producing countries, a joint decline of their production of 1.2 million barrels, with a reduction of 800,000 barrels / day by OPEC and 400,000 barrels / barrel / day. day by these non-OPEC producing countries.

This agreement has been renewed for an additional period of 9 months from 1 July 2019 to 31 March 2020.

In the final communiqué issued following the JMMC meeting, this Committee emphasized the need for a continued commitment to the “Declaration of Cooperation” in support of the stability of the oil market on a sustainable basis.

Regarding the commitment of participating countries to the production reduction agreement, compliance with voluntary production adjustments was 136% in August.

However, the JMMC insisted on the fundamental principles on which the declaration of conformity is based, namely fairness, justice and transparency.

In this context, he urged all participating countries to redouble their efforts to comply fully and in a timely manner with their voluntary production adjustments.

“All participating countries present, especially those who have not yet fully complied with their adjustments, have been unequivocal in providing unshakable assurances of their determination to comply at least 100% for the rest of the year” , notes the JMMC.

    Countries that have complied too much have also reiterated their voluntary contribution.

This Committee also noted the recent decline in commercial stock levels in OECD countries, particularly in the United States, although they remain above the average of the last five years.

It was also noted that all major landmarks are “now downgraded”.

The JMMC also analyzed the critical uncertainties facing the world economy in 2019 and 2020, including trade-related tensions, monetary policies and other macroeconomic factors.

In this context, he urged the authorities to remain vigilant in monitoring the situation of oil markets before the ministerial meetings in early December.

The next JMMC meeting is scheduled to take place on 4 December in Vienna, Austria.

This Committee is composed of Algeria, Saudi Arabia, United Arab Emirates, Iraq, Kuwait, Nigeria, Venezuela, Russia and Kazakhstan.

APS

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