The forum led by HRH Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy and it co-Chairman, HE Alexander Novak, Minister of Energy of the Russian alliance was the 20th Meeting of the Joint Ministerial Monitoring Committee (JMMC) Wednesday, 15 July 2020.
It was affirmed at the conference that the production cut implemented in May had helped collect the oil market recovery in the oil economy.
The committee analyzed growth in the world oil market since its last meeting on 18th June 2020 and the governing body also reviewed market demand for the second half of 2020.
The committee observed market demand for the second half of 2020 and restated the significance of the ‘Declaration of Cooperation'(DoC) in abetting oil market stability.
On June 6, 2020. The OPEC and its partners conducted by Russia, known as OPEC+, concur to broaden the consequential 9.7million barrels per day (bpd) production cuts till the finish of July 2020.
The JMMC planned to meet monthly until December 2020 with respect to assiduously scrutinize the energy market and regarding the implementation of the agreement.
The committee pointed out that shortcomings are more perceptible for the current year, because of the pandemic. For some DoC members, there will be an increase in demand services, just as changes in travel arrangements, boosting demands of the market for fuel and diesel and thus the effect on DoC participating countries’ exports will be restricted.
The governing body was reiterative about its gratitude on the auxiliary premeditated inputs made by Saudi Arabia, the United Arab Emirates and Kuwait in June.
The cumulative OPEC+ cut in August and September would be some 8.4million bpd in the following two months, as Iraq, Nigeria, Angola, Russia and Kazakhstan are required to slash outputs to recompense for the past deficiency in conformity, while Saudi Arabia is also expected to keep its August oil deals at a similar level as in July.
OPEC also expressed certainty that market conditions are moderately progressing but pointed out that all concurring countries must reestablish their pledge to guarantee stability in the international market. The compensation plan that has been agreed will imply that the efficient level of adjustments will be deeper.
It reiterated that full congruity from all participating countries is crucial for the perpetual rebalancing efforts and to help deliver long term oil market stability.
The committee assigned its Secretariat to intently monitor and report to the JMMC the implementation of the mandatory compensation by the underperforming participating countries. Underperforming participating countries were requested to submit their plan for implementation of the required compensation for the month of June 2020 to the OPEC Secretariat before the end of July 2020.
The panel thanked the Joint Technical Committee (JTC) and the OPEC Secretariat for their work. The next meetings of the JTC and the JMMC are planned for 17 August and 18 August 2020.