*Reports 152% conformity level in April
*Pledges to address consumer anxiety over the security of oil supplies
OpeOluwani Akintayo
03 June 2018, Sweetcrude, Lagos — The Organisation of the Petroleum Exporting Countries, OPEC’s Joint Ministerial Monitoring Committee, JMMC, has called for “even performance” across all countries participating in the Declaration of Cooperation entered into late 2016.
The group made the call in the newly released conformity report for April.
Although it expressed “satisfaction with overall results”, however, noted that individual country performance was not uniform.
Highlighting the achievement of OPEC in the DoC, it reported a 152 percent conformity level in April.
According to the committee, the 24 OPEC and non-OPEC producing countries participating in the voluntary production adjustments continue to maintain outstanding levels of conformity to the terms of the historic ‘Declaration of Cooperation’ of December 2016.
The JMMC reported that participating countries have achieved a conformity level of 152% during the fourth month of the second year of the DoC.
This according to the group, demonstrates the commitment of participating countries to the restoration of market stability, which is intended to serve the long-term interests of producers, consumers and the global economy.
The JMMC acknowledged the rising concerns expressed by some importing and consuming countries regarding potential shortages in the global oil market and requested the Joint Technical Committee, JTC, supported by the OPEC Secretariat to continue to closely monitor the oil market and to report any fundamental changes.
The JMMC Committee then reaffirmed participating countries’ commitment to the stability of the market and energy security of the global economy.
Furthermore, the JMMC in the report said it reviewed the JTC’s discussion regarding alternative and/or adjusted metrics to measure the impact of the DoC, and concluded that measuring market stability through a single metric is not sufficient and therefore a more comprehensive set of metrics is required.
The JMMC was established following OPEC’s 171st Ministerial Conference Decision of 30 November 2016, and the subsequent DoC made at the joint OPEC/non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016.
Through the Declaration, 11 (now 10) non-OPEC oil-producing countries and OPEC’s 13 (now 14) member countries decided on voluntary production adjustments of around 1.8 million barrels per day as part of efforts to accelerate the stabilization of the global oil market.
The 9th Meeting of the JMMC will take place in Vienna on 21 June 2018.
