OPEC Plus Marks Sixth Anniversary

OrganizationsInternational Organizations ♦ Published: December 14, 2022; 23:50 ♦ (Vindobona)

The Declaration of Cooperation (DoC) between OPEC member countries and 10 non-OPEC oil-producing countries turned six years old. As the oil cartel engaged in diplomatic celebrations, OPEC reaffirmed its expectations for global oil demand in 2023.

The First OPEC and non-OPEC Ministerial Meeting was held on 10 December 2016 in Vienna, Austria. / Picture: © OPEC - Organization of the Petroleum Exporting Countries

Azerbaijan, the Kingdom of Bahrain, Brunei Darussalam, Equatorial Guinea, which later joined the OPEC, Kazakhstan, Malaysia, Mexico, the Sultanate of Oman, the Russian Federation, the Sudanese Republic and the South Sudanese Republic met in Vienna, Austria in 2016 and established the DoC as a platform for cooperation and dialogue to keep the oil market stable. Other producers attended the meeting in support of these extraordinary efforts.

At the inaugural OPEC and non-OPEC Ministerial Meeting, key decisions were made based on the successful 'Algiers Accord' signed at the 170th (Extraordinary) Meeting of the OPEC Conference in Algiers, Algeria, on 28 September 2016 and the Vienna Agreement signed at the 171st OPEC Conference in Vienna, Austria, on 30 November of the same year.

OPEC Secretary General, HE Haitham Al Ghais, said, “The Declaration of Cooperation is an unprecedented collaborative framework of 23 oil-producing countries that is based on trust, mutual respect and dialogue. Six years later, the framework continues to play an instrumental role in supporting market stability, which is essential for growth and development, as well as attracting the necessary investment to ensure energy security.”

For the benefit of producers, consumers, investors, and the global economy at large, the DoC strives to secure sustainable oil market stability through cooperation and dialogue.

After the COVID-19 pandemic caused the oil market to contract significantly, the DoC participants' commitment to a stable oil market has once again been evident. At the highest levels of government, international organizations, and academia, these efforts have supported the global pandemic recovery process.

OPEC maintains expectations

OPEC has reaffirmed its expectations for global oil demand in 2023. As reported by Vindobona.org, the oil cartel continues to expect an increase of 2.2 million barrels (1 barrel equals 159 liters) of oil per day, according to its monthly report released yesterday.

However, the forecast is subject to uncertainty due to the uncertain global economic outlook, stringent anti-CoV measures in China and current geopolitical tensions, the report said.

Likewise, the forecast for an increase in global oil demand in the current year remains unchanged, which continues to be put at 2.5 million barrels per day.