OPEC and its non-OPEC partners agreed on Tuesday to gradually ease production cuts with return of 2 million barrels a day (mb/d) of the adjustments to the market, with the pace being determined according to market conditions.
The 17th OPEC and non-OPEC Ministerial Meeting (ONOMM), which was held via video conference, concluded on Tuesday, 1 June 2021 welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC), says overall conformity to the production adjustments was 114% in April (including Mexico), reinforcing the trend of high conformity by Participating Countries.
The meeting noted that in view of current oil market fundamentals and the consensus on its outlook, reaffirmed the existing commitment of the participating countries in the DoC to a stable market in the mutual interest of producing nations; the efficient, economic and secure supply to consumers; and a fair return on invested capital.
“Reconfirmed the existing commitment of the 10th OPEC and non-OPEC Ministerial Meeting in April 2020, amended in June, September, and December 2020, as well as in January and April 2021 to gradually return 2 million barrels a day (mb/d) of the adjustments to the market, with the pace being determined according to market conditions. Reiterated the critical importance of adhering to full conformity, and taking advantage of the extension of the compensation period until the end of September 2021, as requested by some underperforming countries.
“Reconfirmed the decision made at the 15th OPEC and non-OPEC Ministerial Meeting with regards to production adjustments for the month of July 2021, given the observed market fundamentals. Emphasized the need to continue to consult and closely monitor market fundamentals and maintain the monthly OPEC and non-OPEC Ministerial Meetings until the end of the decision made at the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020. The 18th OPEC and non-OPEC Ministerial Meeting is scheduled for 1 July 2021”.
International benchmark Brent crude futures traded at $71.17 a barrel on Tuesday, up around 2.7%, while West Texas Intermediate crude futures stood at $68.65, for a gain of more than 3% and the contract’s highest level in more than two years. Oil prices have climbed more than 30% this year.