Sunday, January 22, 2017 1.27PM / OPEC Release
The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) concluded its inaugural meeting today at the OPEC Secretariat in Vienna, Austria.
The JMMC was established following OPEC’s 171st Ministerial Conference Decision of 30 November 2016 and the subsequent Declaration of Cooperation made at the joint OPEC-non-OPEC ministerial meeting held on 10 December 2016.
At the December meeting, 11 non-OPEC oil producers cooperated with the 13 OPEC Member Countries in a concerted effort to accelerate the rebalancing of the global oil market through an adjustment in combined production of 1.8 million barrels per day.
The resulting Declaration, which came into effect on 1 January 2017, is for six months, and is extendable for an additional six months pending the status of supply and demand, as well as global inventories.
The JMMC is tasked with ensuring that the objectives of OPEC’s 171st Ministerial Conference Decision and the Declaration of Cooperation are achieved through successful implementation of voluntary adjustments in production.
The JMMC will also facilitate the exchange of joint analyses and outlooks, which will provide valuable input to the evaluation of the conformity process.
The JMMC is composed of three OPEC Member Countries – Algeria, Kuwait and Venezuela, and two non-OPEC countries – the Russian Federation and Oman.
Today’s inaugural Meeting was chaired by HE Issam A. Almarzooq, Minister of Oil and Minister of Electricity and Water, of Kuwait, who began the proceedings with an opening statement.
Remarks were also delivered by the Russian Energy Minister, HE Alexander Novak, who is the Committee’s Alternate Chairman, and HE Khalid Al-Falih, President of the OPEC Conference.
OPEC’s Research Division then briefed the Committee on oil market developments that have occurred since the Declaration of Cooperation was approved on 10 December 2016.
The JMMC then engaged in a detailed discussion regarding the framework for the realization of the voluntary production adjustments as per the Declaration of Cooperation.
Reaffirming its commitment to joint cooperation for the achievement of a lasting stability in the oil market in the interest of oil producers and consumers, the Committee agreed to full and timely conformity to the agreement with the following stipulations:
• The OPEC Secretariat will present a monthly production data report on OPEC Member Countries’ crude oil and of the participating non-OPEC oil liquid production to the JMMC by the 17th of each upcoming month.
• Evaluation of conformity to the respective country production adjustment will be based on production data only.
• Each of the five member countries of the JMMC will nominate one technical contact person, to form a Joint Technical Committee (JTC), which shall include the Presidency of the OPEC Conference and shall assist the respective Ministers. The JTC will regularly cooperate with the OPEC Secretariat in preparing the monthly report for the JMMC and meet on a monthly basis before submitting their report to the JMMC.
• The JMMC will communicate monthly, after the 17th of each upcoming month, to consider the reports presented by the JTC and the OPEC Secretariat, as well as meet after the 17th of March 2017 and before the OPEC Conference in May 2017.
• The JMMC will issue a monthly press release on the progress towards the implementation of the OPEC 171st Ministerial Conference Decision and the Declaration of Cooperation.
• The JMMC will report to the Conference on the effect of the implementation of the OPEC 171st Ministerial Conference Decision and the Declaration of Cooperation on the market.
The JMMC expressed its satisfaction regarding the strong level of commitment to the agreed framework.
Before adjourning the meeting, the Committee expressed its appreciation to OPEC’s host country, the Government of the Republic of Austria, as well the City of Vienna, for their excellent arrangements made for the Meeting.
1. OPEC & Non-OPEC Cartel Strike a Deal…How Sustainable?