OPEC and Non-OPEC countries participating in voluntary production cuts have started off 2018 with record-breaking conformity levels.
The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) said on Thursday that the participating countries achieved a level of 133% in January 2018, once again breaking the conformity record.
The Committee added that the solid performance during the first month of the second year of the Declaration of Cooperation continued an upward trend seen throughout 2017, and demonstrated the commitment of participating countries to the restoration of market stability.
The JMMC also said that it was satisfied with overall results, but noted the recent market volatility, stressing the importance of vigilance and the need to avoid complacency.
The Committee noted that the performance was not uniform and that conformity was boosted by several over‐performing countries, and urged all participating countries to continue and, to the extent possible, intensify their collective and individual efforts, in order rebalance the oil market.
JMMC’s goal for 2018 is to maintain or exceed full conformity by all participating countries. The next meeting of the JMMC will take place in Saudi Arabia, in April.
The JMMC was established following OPEC’s 171st Ministerial Conference Decision on November 30, 2016, and the subsequent Declaration of Cooperation made at the joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on December 10, 2016.
At the time 11, now 10, non-OPEC oil producing countries cooperated with the 13, now 14, OPEC member countries to accelerate the stabilization of the global oil market through voluntary adjustments in total production of around 1.8 million barrels per day.
At the third joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on November 30, 2017, it was agreed to amend the Declaration of Cooperation so that it will take effect for the entirety of 2018.