UAE, hosting climate talks in November, to stick with OPEC: Bloomberg reports
Snip from Washington Post:
The decision Sunday comes amid some tension inside OPEC Plus. While Saudi Arabia, the dominant member, soughtcuts to production in the hope of pushing the cost of a barrel of Brent past $80, smaller countries such as the United Arab Emirates have been eager to boost production, according to a research note from Capital Economics.
Saudi Arabia announced at the close of the gathering it would unilaterally cut production by 1 million barrels a day to support oil prices, according to media covering the meeting. That news pushed up oil futures Sunday, with Brent crude rising more than 2 percent.
It is also unclear whether Russia has even complied with the earlier cuts OPEC Plus announced this year, the firm noted. Oil tanker tracking data suggests Russia is flouting those agreements, according to Capital Economics.
35th OPEC and non-OPEC Ministerial Meeting
04 Jun 2023
In light of the continued commitment of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC) to achieve and sustain a stable oil market, and to provide long-term guidance for the market, and in line with the successful approach of being precautious, proactive, and pre-emptive, which has been consistently adopted by OPEC and non-OPEC Participating Countries in the Declaration of Cooperation, the Participating Countries decided to:
- Reaffirm the Framework of the Declaration of Cooperation, signed on 10 December 2016 and further endorsed in subsequent meetings; as well as the Charter of Cooperation, signed on 2 July 2019.
- Adjust the level of overall crude oil production for OPEC and non-OPEC Participating Countries in the DoC to 40.46 mb/d, starting 1 January 2024 until 31 December 2024, which to be distributed as per the attached table.
- Reaffirm and extend the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership, to closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this Statement, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC is to be held every two months.
- Hold the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six 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, whenever deemed necessary.
- Reaffirm that the DoC conformity is to be monitored considering crude oil production, based on the information from secondary sources, and according to the methodology applied for OPEC Member Countries.
- Reiterate the critical importance of adhering to full conformity, and subscribe to the concept of compensation by those countries who produce above the required production level as per the attached table, in addition to their already decided production levels.
- Hold the 36th OPEC and non-OPEC Ministerial Meeting on Sunday 26 November 2023, in Vienna.
click link for more notes