Oil & Gas
The 9th Extraordinary OPEC and non-OPEC Ministerial Meeting has resolved to adjust downwards their overall crude oil production by 10.0 mb/d, starting on May 1, 2020, for an initial period of two months that concludes on June 30, 2020.
The held via webinar, on Thursday, April 9, 2020, under the Chairmanship of Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy, and co-Chair HE Alexander Novak, Minister of Energy of the Russian Federation, said that for the subsequent period of 6 months, from July 1, 2020 to December 31, 2020, the total adjustment agreed would 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 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 agreement will be valid until 30 April 2022, however, the extension of this agreement will be reviewed during December 2021,” the communique issued after the meeting said.
The meeting also called on all major producers to contribute to the efforts aimed at stabilizing market.
It reaffirm and extend 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 this Statement, assisted by the Joint Technical Committee, JTC, and the OPEC Secretariat.
The meeting also reaffirmed 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.
It resolved to meet on June 10, 2020 via webinar, to determine further actions, as needed to balance the market.
According to the communique, the resolutions were agreed by all the OPEC and non-OPEC oil producing countries participating in the Declaration of Cooperation, with the exception of Mexico, and as a result, the agreement is conditional on the consent of Mexico.
– Apr. 10, 2020 @ 18:59 GMT |
Tags: non-OPEC ministerial meeting resolves to cut oil production OPEC
