OPEC + Meeting Summary: 6 items subject to Mexico's approval
The Economy News - Baghdad
The Kingdom of Saudi Arabia revealed 6 items included in the "OPEC +" agreement to reduce oil supplies to try to return to the stage of global energy market balance, with a condition for completing the agreement.
On Thursday, the ninth "extraordinary" ministerial meeting of OPEC member states and oil-producing countries outside the organization was held through "Webinar" technology to hold meetings on the Internet, chaired by Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, and his Russian counterpart Alexander Novak, according to news agency Saudi Arabia "SPA", today.
The meeting saw the participation of Argentina, Colombia, Ecuador, Egypt, Indonesia, Norway, Trinidad and Tobago and the International Energy Forum, as observers.
During the meeting, the participating countries announced the cooperation, which includes the member states of OPEC and the oil producing countries participating from outside it, reaffirming their continued commitment to the declaration of cooperation in order to achieve stability in the oil markets, and to maintain it, and the common interests of the producing countries, and to provide safe and economic supplies It is highly efficient for consumers and with fair returns on invested capital.
In view of the current basic data and agreed market perspectives, the participating countries agreed to meet 6 items, namely:
- Reaffirmation of the framework for the Declaration of Cooperation, which was signed on December 10, 2016, and re-ratified at subsequent meetings; in addition to the Cooperation Charter, which was signed on July 2, 2019.
- Making cuts to its total production of crude oil by 10 million barrels per day, starting from May 1, 2020, for a period of two months ending on June 30, 2020, and during the next six-month period, starting from May 1, 2020 to December 31, 2020, the amount of the reduction will be The agreed total is 8 million barrels per day.
To be followed by a reduction of 6 million barrels per day for a period of sixteen months starting from January 1, 2021 to April 30, 2022, and the reference basis for calculating the adjustments is oil production for October 2018, except for Saudi Arabia and the Russian Federation, and the reference basis for each of them It is 11 million barrels per day.
The decision signed today will be in effect until April 30, 2022; however, the possibility of extending the decision in December 2021 will be considered.
Inviting all major producing countries to contribute to the efforts aimed at achieving market stability.
- Reaffirming the role of the joint ministerial committee to monitor the production reduction agreement, and extend its mandate and its membership, in order to thoroughly review the conditions of the public market, the levels of oil production, and the level of commitment to the declaration of cooperation, and with this statement, supported by both the Joint Technical Committee and the OPEC Secretariat .
Reaffirming that monitoring compliance with the Declaration of Cooperation will be applied to the production of crude oil, based on information from secondary sources, in accordance with the methodology applied by OPEC member countries.
- Meeting on January 10, 2020, through the "Webinar" technology, to determine additional measures that may be required to balance markets.
It was agreed on the above between the OPEC member countries and the oil producing countries from outside it and participate in the declaration of cooperation, with the exception of Mexico, and for this, the agreement is conditional on Mexico's approval.