Rising price: Oil Ministers approve 0.4mbpd addition to global supply
The Oil Ministers of the Organisation of Petroleum Exporting Countries (OPEC) and non OPEC yesterday approved addition of 0.4 million barrels per day (mbpd) to global crude oil production supply. This decision is contained in the communique of the
20th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference on Wednesday, September 1, 2021.
The meeting noted that, in view of current oil market fundamentals and the consensus on its outlook, the Meeting resolved to reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th ONOMM and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of October 2021.
Delegates at the meeting resolved the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD stocks continue to fall as the recovery accelerates.
The meeting welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC). Overall conformity to the production adjustments was 110% in July including Mexico (109% without Mexico), reinforcing the trend of high conformity by Participating Countries.
It also reaffirmed the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th ONOMM on 18 July 2021. The delegates extended the compensation period until the end of December 2021 as requested by some underperforming countries and request that underperforming countries submit their compensation plans by 17 September 2021. It resolved that compensation plans should be submitted in accordance with the statement of the 15th ONOMM.
According to the communique, OPEC and non OPEC reiterated the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of December 2021
It was agreed by participants that 21st OPEC and non-OPEC Ministerial Meeting should convene again on October 4, 2021.
