The 5th OPEC and non-OPEC Ministerial Meeting decided to adjust the overall production by 1.2 mb/d, effective as of January 2019 for an initial period of six months. The contributions from OPEC and the voluntary contributions from non-OPEC participating countries of the ‘Declaration of Cooperation’ will amount to 0.8 mb/d (2.5%), and 0.4 mb/d (2.0%), respectively.
Namely, the Ministerial Meeting highlighted the rights of people and nations to permanent sovereignty over their natural wealth and resources.
The meeting reaffirmed:
- The continued commitment of the participating producing countries in the ‘Declaration of Cooperation’ (DOC) to a stable market;
- The mutual interest of producing nations;
- The efficient, economic, and secure supply to consumers;
- Affair return on invested capital;
- Noting the overall improvement in market conditions and sentiment;
- The return of confidence and investment to the oil industry.
The Conference focused on oil market developments since its last meeting in Vienna on June 2018, and revised the oil market outlook for the remainder of 2018 and 2019. Also, the Conference acknowledged that current oil supply and demand fundamentals result to a well accommodated market.
What’s more, the developing market volatility and broad consensus for 2019 were under discussion, and suggested a higher supply growth in comparison to global requirements, considering prevailing uncertainties. The Meeting also concluded that the economic growth outlook for year 2019 is a bit lower than 2018. Some factors affecting the economic growth are claimed to be the macroeconomic policies and associated uncertainties.
Moreover, the JMMC was asked to monitor the fair implementation of the above mentioned resolution and report back to the Meeting.
The Ministerial Meeting addressed the support and commitment of all participating counties in DOC to construct on the success that has been established until now. The success was achieved through further institutionalizing the framework for regular and lasting cooperation under the draft Charter of Cooperation between Oil Producing Countries, which was endorsed in principle and to be finalized and ratified by the participating countries.
The Meeting also pointed out that the ‘DOC’ remains open to all producers. It was decided that the next OPEC and non-OPEC Ministerial Meeting will convene in Vienna, Austria, in April 2019.
Concluding, the Ministerial Meeting took place in Vienna, Austria on December 7, under the Co-Chairmanship of OPEC’s President, HE Suhail Mohamed Al Mazrouei, Minister of Energy & Industry of the United Arab Emirates and Head of its Delegation, and HE Alexander Novak, Minister of Energy of the Russian Federation.
