OPEC, allies reaffirm commitment to a balanced oil market

The Joint Ministerial Monitoring Committee (JMMC) of OPEC and non-OPEC countries reaffirmed its commitment to achieving a balanced oil market and working towards its stability on a sustainable basis with solid fundamentals.

After the 14th meeting of the JMMC in Jeddah on Sunday, the committee expressed its satisfaction regarding the critical role which the ‘Declaration of Cooperation’ (DoC) played in the oil market recovery seen in Q1 2019 compared to Q4 2018, supported by high conformity to the voluntary production adjustments by participating countries.

A statement issued by the committee after the meeting showed conformity for April 2019 was 168 percent, and this record high figure also had positive ramifications for global economic growth in the first four months of 2019.

Average conformity has reached 120 percent since January 2019, the statement further added.

In analyzing current oil market conditions and macroeconomic developments, the committee also recognized that critical uncertainties remain, including ongoing trade negotiations, monetary policy developments and geopolitical challenges.

The JMMC requested the Joint Technical Committee and the OPEC Secretariat to continue to monitor and analyze oil market developments and, particularly, oil inventory projections in the coming weeks with a view to the next meeting.

The 15th JMMC Meeting is scheduled to take place in June 2019 at the OPEC Secretariat in Vienna, Austria.