The 24 OPEC and non-OPEC producing countries participating in the voluntary production adjustments continue to maintain outstanding levels of conformity to the terms of the historic ‘Declaration of Cooperation’ of December 2016, according to the Joint Ministerial Monitoring Committee (JMMC).
The JMMC reported that participating countries have achieved a conformity level of 152% during the fourth month of the second year of the Declaration of Cooperation. This demonstrates the commitment of participating countries to the restoration of market stability, which is intended to serve the long term interests of producers, consumers and the global economy.
The JMMC acknowledged the rising concerns expressed by some importing and consuming countries regarding potential shortages in the global oil market and requested the JTC, supported by the OPEC Secretariat to continue to closely monitor the oil market and to report any fundamental changes. The JMMC Committee reaffirmed participating countries’ commitment to the stability of the market and energy security of the global economy.
Furthermore, the JMMC reviewed the JTC’s discussion regarding alternative and/or adjusted metrics to measure the impact of the Declaration of Cooperation and concluded that measuring market stability through a single metric is not sufficient and therefore a more comprehensive set of metrics is required.
Committee members expressed satisfaction with overall results, but noted that individual country performance was not uniform. They once again highlighted the importance of even performance across all countries.
The JMMC was established following OPEC’s 171st Ministerial Conference Decision of 30 November 2016, and the subsequent ‘Declaration of Cooperation’ made at the joint OPEC/non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016. Through the Declaration, 11 (now 10) non-OPEC oil producing countries and OPEC’s 13 (now 14) Member Countries decided on voluntary production adjustments of around 1.8 million barrels per day as part of efforts to accelerate the stabilization of the global oil market.
The 9th Meeting of the JMMC will take place in Vienna on 21 June 2018.