By Teddy Nwanunobi
The 17th Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting (ONOMM), held via videoconference, on Tuesday, June 1, among other things, reaffirmed the existing commitment of the participating countries in the Declaration of Cooperation (DoC) to a stable market in the mutual interest of producing nations.
Valuechain reports that the DoC constitutes an unprecedented milestone in the history of the OPEC.
The meeting had noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement, and the Organisation for Economic Co-operation and Development (OECD) stocks falling, as the economic recovery continued in most parts of the world, as vaccination programmes accelerated.
Furthermore, the meeting welcomed the positive performance of participating countries in the DoC.
“Overall conformity to the production adjustments was 114 per cent in April (including Mexico), reinforcing the trend of high conformity by participating countries.
“In view of current oil market fundamentals and the consensus on its outlook, the meeting:
“Reaffirmed the existing commitment of the participating countries in the DoC to a stable market in the mutual interest of producing nations; the efficient, economic and secure supply to consumers; and a fair return on invested capital.
“Reconfirmed the existing commitment of the 10th OPEC and non-OPEC Ministerial Meeting in April 2020, amended in June, September, and December 2020, as well as in January and April 2021 to gradually return 2 million barrels a day (mb/d) of the adjustments to the market, with the pace being determined according to market conditions.
“Reiterated the critical importance of adhering to full conformity, and taking advantage of the extension of the compensation period until the end of September 2021, as requested by some underperforming countries. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
“Reconfirmed the decision made at the 15th OPEC and non-OPEC Ministerial Meeting with regards to production adjustments for the month of July 2021, given the observed market fundamentals.
“Emphasised the need to continue to consult and closely monitor market fundamentals and maintain the monthly OPEC and non-OPEC Ministerial Meetings until the end of the decision made at the 10th OPEC and non-OPEC Ministerial Meeting on April 12, 2020,” the meeting disclosed.
Valuechain reports that the 18th OPEC and non-OPEC Ministerial Meeting is scheduled for July 1, 2021.