*Participating countries to add 500,000b/d from January 2021
Lagos — In light of the current oil market fundamentals and the outlook for 2021, the 12th OPEC and non-OPEC Ministerial Meeting, ONOMM over the weekend has agreed to confirm the existing commitment under the Declaration of Corporation, DoC decision from 12 April 2020, then amended in June and September 2020, to gradually return 2 million barrels per day to the market.
Beginning in January 2021, DoC participating countries will voluntary adjust production by 0.5 mb/d from 7.7 mb/d to 7.2 mb/d.
Furthermore, DoC participating counties agreed to hold monthly OPEC and non-OPEC ministerial meetings starting January 2021 to assess market conditions and decide on further production adjustments for the following month, with further monthly adjustments being no more than 0.5 mb/d.
The Meeting also agreed to extend the compensation period established from the 11th ONOMM, and later amended in September 2020, for the period of January until the end of March 2021, to ensure full compensation of overproduction from all DoC participating countries.
The decision for an increase in market share comes days after President Muhammadu Buhari urged OPEC to reconsider its decision to further cut production, likewise its economic effect on oil-dependent countries such as Nigeria.