As of November 2017, the OPEC and participating non-OPEC producing countries in the production cut agreement have achieved an impressive highest conformity level of 122 per cent, the Joint Ministerial Monitoring Committee (JMMC) has stated.
The production cut has already yielded positive result in the industry by rebalancing the stock and helped return investments into the oil industry according to the Opec Secretary General, Mohammed Barkindo.
The JMMC was established following OPEC’s 171st Ministerial Conference Decision of 30 November 2016, and the subsequent Declaration of Cooperation made at the joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016 at which 11 (now 10) non-OPEC oil producing countries cooperated with the 13 (now 14) OPEC Member Countries in an effort to accelerate the stabilization of the global oil market through voluntary adjustments in total oil production of around 1.8 million barrels per day.
The resulting framework, which came into effect on 1 January 2017, was for six months. The second joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on 25 May 2017, decided to extend the voluntary production adjustments for another nine months commencing 1 July 2017. During its third meeting held in Vienna on 30 November 2017, the joint OPEC-Non-OPEC Producing Countries’ Ministers agreed to amend the Declaration of Cooperation so that it will last the entirety of 2018.
