Caspian Energy Journal Caspian European Club
Tuesday, 26 September 2017 15:30

Next JMMC meeting scheduled to be held on November 29

Next JMMC meeting scheduled to be held on November 29

According to the results of the yesterday’s meeting of the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC), OPEC and participating Non-OPEC producing countries recorded the highest conformity ever with their voluntary adjustments in production, achieving a level of 116%, Caspian Energy News ( reports with reference to OPEC.

Meanwhile, as RF Minister of Energy Alexander Novak told journalists, “the countries, involved in OPEC’s oil production cut agreement, fulfilled their obligations by 99% within 8 months of 2017. There is no precedent for this high level”. 

At the OPEC’s committee meeting, the ministers summed up the results of the execution of the deal in August and 8 months of 2017. They discussed production rate in Libya and Nigeria, released from obligations within the framework of the OPEC agreement, as well as discussed a possibility of monitoring the oil export data provided by the agreement participants.

The next JMMC Meeting is scheduled to be held in Vienna, on 29 November 2017, says the final press release of the cartel dedicated to the outcomes of the committee meeting.

The issue about prolonging the OPEC agreement on oil production cut can be considered no earlier than January, Novak says. “In my opinion, the matter on prolongation of the agreement can be addressed soundly no earlier than January”, he said and stressed the need of monitoring the market situation and understand which market recovery processes shall take place.

“We – the Minister clarified – prolonged the deal for 9 months in May, that is to say, practically 1.5 month prior to the beginning of the term of new agreements. Now when there are 7 months left till the end of the agreement, it is impossible to say if we will extend it or not. We can only assume that we do have such option which we will use in case of necessity”.

The JMMC was established following OPEC’s 171st Ministerial Conference Decision of 30 November 2016, and the subsequent Declaration of Cooperation made at the joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016 at which 11 (now 10) non-OPEC oil producing countries cooperated with the 13 (now 14) OPEC Member Countries in a concerted effort to accelerate the stabilization of the global oil market through voluntary adjustments in total production of around 1.8 million barrels per day. The resulting Declaration, which came into effect on 1 January 2017, was for six months. The second joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on 25 May 2017, decided to extend the voluntary production adjustments for another nine months commencing 1 July 2017.

Commercial oil stocks in the OECD fell further in August and the difference to the latest five-year average has been reduced by 168 million barrels since the beginning of this year, however, there remains another 170 million barrels of stock overhang to be depleted.

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Person in charge of the newsline: Fidan Isayeva 

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