OPEC+ cuts down oil production to 2 mb/d
The Organisation of Petroleum Exporting Countries, OPEC+ has agreed to adjust downward, the overall production of crude oil by 2 mb/d, from the August 2022 required production levels.
This will commence from November 2022 for OPEC and Non-OPEC Participating Countries.
This is contained in a statement published on the OPEC+ website following the 45th Meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 33rd OPEC and Non-OPEC Ministerial Meeting which held at the OPEC Secretariat in Vienna, Austria, on Wednesday, 5 October 2022.
As part of resolutions at the meeting, the OPEC also agreed to reconfirm the baseline adjustment approved at the 19th OPEC and non-OPEC Ministerial Meeting.
The OPEC+ said the downward review of price comes as a result of uncertainty that surrounds the global economic and oil market outlooks.
Also, “the need to enhance the long-term guidance for the oil market, and in line with the successful approach of being proactive, and preemptive, which has been consistently adopted by OPEC and Non-OPEC Participating Countries in the Declaration of Cooperation.”
The participating Countries also resolved to:
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 OPEC and non-OPEC Ministerial Meeting on 18 July 2021.
Extend the duration of Declaration of Cooperation until the 31st of December 2023
Other resolutions at the meeting include:
Adjust the frequency of the monthly meetings to become every two months for the Joint Ministerial Monitoring Committee (JMMC).
Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every 6 months in accordance with the ordinary OPEC scheduled conference.
Grant the JMMC the authority to hold additional meetings, or to request an OPEC and non-OPEC Ministerial Meeting at any time to address market developments if necessary.
Extend the compensation period to the 31st of March 2023. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and Non-OPEC Ministerial Meeting.
Reiterate the critical importance of adhering to full conformity.
Hold the 34th OPEC and Non-OPEC Ministerial Meeting on 4 December 2022.
Hauwa Abu
