Organization of petroleum exporting countries, OPEC, and non-OPEC members have reconfirmed the decision made at its 12th meeting to increase production by 0.5 mb/d starting in January 2021 and then adjusting production from 7.7 mb/d to 7.2 mb/d.
The decision was, made at The 13th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference, on Tuesday, 5 January 2021.
The adjustments to the production level which will be a decrease of five hundred thousand barrels for February and March 2021 will be implemented as per the distribution detail.
Production adjustments for April and subsequent months will be decided during the monthly ONOMM following the criteria agreed upon in the 12th ONOMM.
The Meeting, which was reconvened following an initial round of discussions on Monday 4th January, reaffirmed the continued commitment of the participating countries in the Declaration of Cooperation (DoC) to a stable market in the mutual interest of producing nations.
The Meeting noted that high conformity levels have contributed significantly to market rebalancing and stability.
Between May and November, 2020 participating OPEC and non- OPEC countries contributed to reducing the global supply by approximately 1.9 billion barrels, including voluntary adjustments, and this has been key to the rebalancing of the market.
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All underperforming participating countries are to submit their plans for implementation of the required compensation for the overproduced volumes to the OPEC Secretariat by 15 January 2021.
(Editor: Nkoli Omhoudu)
