In order to establish market stability, the Organization of Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+, have reduced Nigeria’s oil output, excluding condensate, by 20.7% to 1.38 million barrels per day, or mb/d, from 1.74 mb/d.
The key meeting of the 49th Joint Ministerial Monitoring Committee (JMMC) and the 35th OPEC and non-OPEC Ministerial Meeting, both of which were broadcast live by Vanguard yesterday in Vienna, Austria, resulted in the decision that will go into effect in January 2024.
Saudi Arabia will reportedly produce 10.48 mb/d, the largest ever recorded by a single country, under the organization’s new voluntary adjustment scheme, while Sudan will produce 64,000 bpd, the least amount.
The program also stated that non-OPEC nations produce 15.5 mb/d of the world’s oil production, compared to OPEC member states, whose combined output stood at roughly 25 mb/d.
Despite several concerns and problems on the global market, OPEC+ indicated in a statement that it is still dedicated to attaining stability.
It stated: “In light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on 2 July 2019.”
It also agreed to, “Adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024, which to be distributed as per the attached table.
“Reaffirm and extend the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership, to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this Statement, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC is to be held every two months.
“Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in accordance with the ordinary OPEC scheduled conference.
“Grant the JMMC the authority to hold additional meetings or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments, whenever deemed necessary.“
“Reaffirm that the DoC conformity is to be monitored considering crude oil production, based on the information from secondary sources, and according to the methodology applied for OPEC Member Countries.
“Reiterate the critical importance of adhering to full conformity, and subscribe to the concept of compensation by those countries who produce above the required production level as per the attached table, in addition to their already decided production levels.”
