*Expresses concerns over rising inventories
03 November 2018, Sweetcrude, Lagos — OPEC’s Joint Ministerial Monitoring Committee, JMMC, has expressed satisfaction with developments in the oil market after reviewing the monthly report prepared by its Joint Technical Committee, JTC.
Group said the oil market is as it should, including the overall conformity levels of the countries participating in the Declaration of Cooperation, DoC, during the month of September 2018, as well as the short-term prospects of the global oil market.
The JMMC noted that countries participating in the DoC achieved a conformity level of 111% in September 2018, which shows significant progress towards the goal set at the 4th OPEC and non-OPEC Ministerial Meeting of 23 June 2018.
After reviewing recent market fundamentals, which showed a very comfortable supply level relative to demand, the Committee likewise expressed overall satisfaction with the collective performance of member countries in the month of September.
It, however, expressed concerns about rising inventories in recent weeks and also noted looming macroeconomic uncertainties which may require changing course.
Oil inventories provide insight into the balance of supply and demand in the oil market, and the balance of supply and demand influences oil prices.
The JMMC directed the JTC to continue to monitor oil fundamentals and market conditions as well as conformity levels in its efforts to maintain market balance.
It further directed the JTC to continue to study the 2019 outlook and present options on 2019 production levels to prevent the reemergence of a market imbalance.
The next meeting of the JMMC is scheduled to take place on 11 November 2018 in Abu Dhabi, UAE.