Member countries of the Organisation of Petroleum Exporting Countries (OPEC), and its allies in the Declaration of Cooperation, called OPEC+, yesterday, gave participants in the agreement yet to fully comply with the agreed cuts, till Monday, June 22, 2020, to submit details of their plans to compensate for their non-compliance.
Nigeria was listed among countries yet to fully comply with the first phase of agreed production output cuts.
In a statement issued after the 19th Joint Ministerial Monitoring Committee (JMMC), held via videoconference, the OPEC+ countries stressed that the attainment of 100 percent conformity from all participating countries was not only fair and equitable but vital for the ongoing and timely rebalancing efforts and help in delivering a sustainable oil market stability.
The statement reads: “The Committee would like to thank those participants, namely Iraq and Kazakhstan, which have already submitted their compensation schedules and agreed to give other underperforming participants, which have not yet submitted final plans, until next Monday 22 June 2020 to submit their schedules for compensation to the OPEC Secretariat.
“Furthermore, the Committee mandated the Secretariat to reach out to all the underperforming Participating Countries to submit their schedules for compensation by the above-mentioned date.
“The Committee stated their appreciation of additional voluntary contributions totaling 1.2 million barrels per day made by Saudi Arabia, the UAE, Kuwait, and Oman in the month of June 2020.
“The Committee thanked the JTC and the OPEC Secretariat for its ongoing work. The JTC and the JMMC will continue their monthly meetings, with the next ones scheduled for 14 July and 15 July, respectively.”
The statement noted that the JMMC reviewed the monthly report prepared by the Joint Technical Committee (JTC) and recent developments in the global oil market, as well as immediate prospects for the remainder of 2020 and into 2021.
The JMMC further reiterated the critical role that the ‘Declaration of Cooperation’ (DoC) continues to play in supporting oil market stability and economic recovery, in the face of the COVID- 19 pandemic shock and the subsequent severe global economic downturn.
The Committee took note of the overall conformity of 87 percent for the month of May 2020, while it also observed individual country conformity levels and reiterated the critical importance that all participating countries achieve their 100 percent level, and make up for any monthly shortfalls in the months of July, August, and September.
In his address to the JMMC, Secretary-General of OPEC disclosed that it is vital that the committee looks to layout possible pathways for the coming months, the remainder of 2020 and into 2021, stating that this would aid all ministers in their future decision making processes, and enable the DoC partners to remain proactive to help further rebalance fundamentals and try and reduce volatility in the oil market.
He said, “We need to be calm, but resolute; patient, but persistent. From the perspective of the OPEC Secretariat, let me stress that we will continue our outreach to other producers beyond the DoC, as well as to consumers. It is vital that we have transparent and open channels for communication.
“At the recent Ministerial Meetings, we had Ecuador, Indonesia, and Trinidad & Tobago as observers; the current crisis has seen us further evolve relations with producers such as Canada, Norway, and Colombia, including recent bilateral meetings with Alberta’s energy minister, Norway’s petroleum and energy minister and Colombia’s energy minister; we have benefitted from the relationships we have evolved with US tight oil producers over the last four years, particularly at the annual CERAWeek conference; and we have held recent briefings with major consumers, China, India and the European Union.”