Home » OPEC Addresses Oil Price Decline

OPEC Addresses Oil Price Decline

by Oluwatosin Racheal Alabi

The Organisation of Oil Petroleum Exporting Countries (OPEC) has taken active steps in reviewing and addressing production data across its member states and allies.

Prices have seen an 8% decline, plummeting to $89.36 per barrel from the earlier $97.17 per barrel recorded just last week.

The 50th Meeting of the Joint Ministerial Monitoring Committee (JMMC) served as the platform for this crucial review. Post-review, OPEC made a strong call to its members and collaborators. They urged them to honor the conformity levels set out in the Declaration of Cooperation (DoC).

Vanguard provided a statement shedding light on the JMMC’s observations. The committee reviewed crude oil production data from July and August 2023. They highlighted a satisfactory level of commitment to the DoC by both OPEC and non-OPEC nations. Moreover, the committee stressed the importance of nations achieving full compliance and sticking to the agreed compensation mechanism.

To further their resolve, the committee pointed members to the duration of the DoC. This agreement extends to the end of 2024, as settled in the 35th OPEC and non-OPEC Ministerial Meeting (ONOMM) on June 4, 2023.

A change in the frequency of the JMMC’s meetings is on the horizon. Instead of monthly, they will now occur every two months. This decision, paired with the JMMC’s power to call for more OPEC and non-OPEC Ministerial Meetings, was a result of discussions during the 33rd ONOMM on October 5, 2022.

The committee pledged a vigilant approach, promising ongoing assessments of market conditions. They highlighted the readiness of DoC countries to tackle emerging market challenges. Furthermore, the statement emphasized the unity and collective strength of OPEC and non-OPEC oil-producing nations.

The Kingdom of Saudi Arabia received a commendation from the committee for its steadfast efforts. The kingdom’s decision to voluntarily cut oil production by 1 million barrels per day until December 2023 stood out. Additionally, the Russian Federation earned praise for deciding to reduce its exports by 300,000 barrels per day until the end of December 2023.

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