The 179th Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) has agreed “the option of extending the first phase of the production adjustments pertaining in May and June by one further month”.The conference, which was held via videoconference, on Saturday June 6, 2020, under the Chairmanship of its President, HE Mohamed Arkab, Minister of Energy of Algeria and Head of its Delegation, said that in view of current fundamentals, all Member Countries agreed to the five key elements in reaching their unanimous decision, which will be recommended to non-OPEC Participating Countries.
The statement issued after the conference by the OPEC Secretariat in Vienna, Austria listed the key resolutions as:
1, Reconfirmed the existing arrangements under the April agreement.
2, Subscribed to the concept of compensation by those countries who were unable to reach full conformity (100 percent) in May and June, with a willingness to accommodate it in July, August and September, in addition to their already agreed production adjustment for such months.
3, Agreed the option of extending the first phase of the production adjustments pertaining in May and June by one further month.
4, Recognized that the continuity of the current agreement is contingent on them fulfilling elements 1 and 2 above.
5, Agreed without dissent that the full and timely implementation of the agreement remains inviolable, based on the five key elements.
According to the statement, the meeting therefore agreed unanimously to extend the first phase of the production adjustment agreed at the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting for a further month, to now run from 1 May 2020 to 31 July 2020.
The meeting called on all major oil producers to contribute proportionally to the stabilization of the oil market, taking into consideration the substantial efforts made by the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation (DoC)..
It added that the Member Countries reaffirmed their continued focus on fundamentals for a stable and balanced oil market, in the interests of producers, consumers, and the global economy.
“The Conference emphasized the ongoing dialogue with both producing and consuming countries, and the consultations undertaken in a collegial spirit before reaching decisions. Member Countries are resolute and committed to being dependable and reliable suppliers of crude and products to global markets,” the statement added.