OPEC and Non-OPEC Participating Countries Agree on Crude Oil Production Adjustments
In a bid to maintain stability in the oil market, OPEC and non-OPEC Participating Countries have announced key decisions during the 35th OPEC and non-OPEC Ministerial Meeting held in Vienna. The meeting emphasized the commitment to achieving a stable oil market and providing long-term guidance for the industry.
The group which pumps around 40 percent of the world's crude oil, gathered for their 35th meeting to decide on new steps for an output-limiting deal as the global market faces flagging oil prices and a looming supply glut. / Picture: © Wikimedia Commons / DALIBRI / CC BY-SA (https://creativecommons.org/licenses/by-sa/3.0)
The participating countries have reconfirmed their dedication to the Framework of the Declaration of Cooperation (DoC), initially signed on 10 December 2016, and further endorsed in subsequent meetings. Additionally, they have extended the Charter of Cooperation, signed on 2 July 2019, as a framework for their collaboration.
As part of their proactive and precautious approach, the Participating Countries have decided to adjust the overall crude oil production level for OPEC and non-OPEC countries in the DoC to 40.46 million barrels per day. This adjustment will be implemented from 1 January 2024 until 31 December 2024, with the specific distribution outlined in the attached table.
To ensure effective monitoring and assessment, the meeting has reaffirmed and extended the mandate of the Joint Ministerial Monitoring Committee (JMMC). The JMMC, along with the Joint Technical Committee (JTC) and the OPEC Secretariat, will closely review global oil market conditions, production levels, and conformity with the DoC and the decisions made during this meeting. The JMMC will convene every two months, with the authority to hold additional meetings or request an OPEC and non-OPEC Ministerial Meeting as needed to address market developments.
In terms of monitoring conformity, the participating countries have underscored the importance of adhering to full compliance. Crude oil production levels will be monitored based on information from secondary sources, following the methodology applied for OPEC Member Countries. The concept of compensation will be embraced, requiring countries that exceed their production levels, as outlined in the attached table, to compensate accordingly.
Looking ahead, the 36th OPEC and non-OPEC Ministerial Meeting is scheduled to take place on Sunday, 26 November 2023, in Vienna. This regular conference, held every six months, will provide an opportunity for further discussions and decisions on market conditions and oil production.
The decisions made during the 35th OPEC and non-OPEC Ministerial Meeting demonstrate the collective effort to ensure a stable oil market and sustain the long-term progress of the industry. By reaffirming their commitments and adjusting production levels, participating countries aim to address market challenges and promote a balanced and sustainable future for the global oil sector.