The Committee emphasized the ongoing positive contributions of the Declaration of Cooperation (DoC) in supporting a rebalancing of the global oil market in line with the historic decisions taken at the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting on 12 April 2020 to adjust downwards overall crude oil production, and the unanimous decisions taken at the 179th Meeting of the OPEC Conference and the 11th OPEC and non-OPEC Ministerial Meeting on 6 June 2020.
The Committee noted, with gratitude, the significant additional voluntary supply adjustment made by Saudi Arabia, taking effect on 1 February 2021 for two months, exemplifying its leadership, and the need for a flexible and pre-emptive approach by all DoC members.
The Committee reviewed the monthly report prepared by the Joint Technical Committee (JTC), including the crude oil production data for the month of December 2020. The Committee welcomed the positive performance of Participating Countries. Overall conformity with the original production adjustments was 101 per cent, reinforcing the trend of high compliance by Participating Countries.
The Committee noted that since the April 2020 Ministerial Meeting, OPEC and non-OPEC countries have adjusted oil production down by a cumulative 2.1 billion barrels, stabilizing the oil market and accelerating the rebalancing process.
The Committee further noted that DoC participants pledged to achieve full conformity and make up for previous compensation short-falls, and stressed the importance of accelerating market rebalancing without delay. The progress of Nigeria in this respect was well noted.
The Committee observed that in December 2020, stocks in OECD countries had fallen for the fifth consecutive month. The Committee observed that, while economic prospects and oil demand would remain uncertain in the coming months, the gradual rollout of vaccines around the world is a positive factor for the rest of the year, boosting the global economy and oil demand.
The Committee reminded all Participating Countries to remain vigilant and flexible given the uncertain market conditions, and to stay on the course, which has hitherto reaped rewards.
The Committee thanked the JTC and the OPEC Secretariat for their contributions to the meeting. The next meeting of the JMMC is scheduled for 3 March 2021.