BY KAYODE EKUNDAYO
The organization of Petroleum Exporting Countries (OPEC) and non-OPEC ministerial meeting (ONOMM) has agreed to adjust upward, the monthly overall production by 0.4 mb/d for the month of October 2021.
The organization at its 20th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference, concluded on Wednesday, 1 September 2021, noted that while the effects of the COVID-19 pandemic continue to cast some uncertainty, market fundamentals have strengthened and OECD stocks continue to fall as the recovery accelerates.
The Meeting welcomed the positive performance of participating countries in the Declaration of Cooperation (DoC) adding that overall conformity to the production adjustments was 110% in July including Mexico (109% without Mexico), reinforcing the trend of high conformity by Participating Countries.
In view of current oil market fundamentals and the consensus on its outlook, the Meeting resolved to also extends the compensation period until the end of December 2021 as requested by some under-performing countries and request that under-performing countries submit their compensation plans by 17 September 2021.
Compensation plans should be submitted in accordance with the statement of the 15th ONOMM, the organization said in a statement.
OPEC reiterates the critical importance of adhering to full conformity and to the compensation mechanism, taking advantage of the extension of the compensation period until the end of December 2021.
The 21st OPEC and non-OPEC Ministerial meeting has been scheduled to October 4, 2021.
The group also reaffirm the decision of the 10th OPEC and non-OPEC Ministerial meeting on 12 April 2020 and further endorsed in subsequent meetings, including the 19th ONOMM on 18 July 2021.