Source: Organization of the Petroleum Exporting Countries – OPEC
Following its 16th Meeting, which took place on 12 September 2019, in Abu Dhabi, the United Arab Emirates, the Joint Ministerial Monitoring Committee (JMMC) has underscored the critical need for continued commitment to the ‘Declaration of Cooperation’ (DoC) in support of oil market stability on a sustainable basis.
Conformity with the voluntary production adjustments remains high, 136% in the month of August. However, the JMMC reemphasized the core principles underpinning the DoC, namely, equity, fairness and transparency, and urged all participating countries to intensify their efforts in pursuit of full and timely conformity with their voluntary production adjustments.
All participating countries present, particularly those who are yet to reach full conformity with their adjustments, were unequivocal in providing steadfast assurances of their determination to achieve at least 100% conformity for the remainder of the year. Those countries who have over-conformed also reiterated their voluntary contribution. Resultantly, overall conformity will be brought to record levels.
The JMMC observed the recent decline in OECD commercial stock levels, particularly in the US, although they remain above the five-year average. It was also noted that all major benchmarks are now in backwardation.
Furthermore, the Committee analyzed the range of critical uncertainties facing the global economy in 2019 and 2020, including trade-related tensions, monetary policies and other macroeconomic factors.
The JMMC urged continued vigilance in monitoring oil market conditions ahead of the Ministerial Meetings in early December.
Despite this challenging backdrop, the DoC partnership continues to serve as a beacon of dependability and consistency in the global oil market, thereby providing reassurances for producers, consumers and global economy.
In light of these macroeconomic uncertainties, the JMMC agreed that enhanced cooperation and dialogue are more important than ever. For this reason, it underscored its commitment to the historic ‘Charter of Cooperation,’ which was signed at the 6th OPEC and non-OPEC Ministerial Meeting on 2 July 2019. This unique initiative offers a platform to facilitate dialogue among the participating countries, aimed at promoting oil market stability, cooperation in technology and other areas, for the benefit of oil producers, consumers, investors and the global economy.
The JMMC expressed its appreciation for the excellent logistical arrangements and thanked His Excellency, Suhail Mohamed Al Mazrouei, Minister of Energy and Industry of the UAE, for again hosting the JMMC, as well as commending all officials and representatives from the UAE who were involved in organizational matters.
The next meeting of the JMMC is scheduled to take place on 4 December 2019 at the OPEC Secretariat in Vienna, Austria.