Luanda – The Organization of Petroleum Exporting Countries (OPEC) and its partners decided to adjust the level of oil production in each country by up to 7, 700 barrels/day, this year.
The decision was taken during the 13th Ministerial Meeting of OPEC and partners held by videoconference from Vienna, Austria.
The production adjustments for April and subsequent months will be decided during the monthly OPEC and Non-OPEC (ONOMM) meeting following the criteria agreed in the 12th ONOMM.
The meeting reiterated the need to continue to closely monitor market fundamentals, including non-DoC supply and its impact on the global oil balance and overall market stability.
It concluded that high levels of compliance contributed significantly to the rebalancing and stability of the market.
The forum stressed that between May and November, participating OPEC and non-OPEC countries contributed to reducing the global supply by approximately 1.9 billion barrels, including voluntary adjustments, and that this has been instrumental in rebalancing the market.
It was drawn attention to the exceptional year of 2020 as an abnormal "outlier" variation that distorts the last five-year average of the Organization for Economic or Economic Cooperation and Development (OECD)’s commercial oil stock levels.
It was recommended the keeping of the 2015-2019 average as a more representative measurement, while maintaining the most recent five-year average for now.
The meeting thanked the participating countries, in particular the United Arab Emirates and Angola, which performed more than expected.
The critical importance of adhering to full compliance and compensating for overproduced volumes in accordance with the declarations of the 11th and 12th of ONOMM in order to achieve the objective of rebalancing the market and avoiding undue delays in the process, was reiterated in the gathering.
It requested all participating countries with low performance to present their plans for the implementation of the necessary compensation for excess volumes produced to the OPEC Secretariat by 15 January 2021.
The next meeting of the Joint Ministerial Monitoring Committee (JMMC) will be held on February 3, 2021, followed by a Meeting of JMMC on March 3, 2021, and ONOMM on March 4, 2021.
