Oil Prices to Stabilise as OPEC Resolves to Retain 2m bpd Quota

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By Our Reporter

Reports gathered indicate that the Organisation of Petroleum Exporting Countries, OPEC, and its allies, popularly known as OPEC, have agreed to retain their current two million barrel per day, bpd, production quota.

It was confirmed that the decision was taken at the just-concluded 34th OPEC and non-OPEC Ministerial Meeting, which took place by video conference on Sunday, December 4, 2022.

And this was also in line with the decision of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation at the 33rd OPEC and non-OPEC Ministerial Meeting on October 5, 2022.

In a statement made available to newsmen, yesterday, OPEC stated: “In line with the decision of the OPEC and non-OPEC Participating Countries in the Declaration of Cooperation at the 33rd OPEC and non-OPEC Ministerial Meeting on 5 October 2022, which was purely driven by market considerations and recognized in retrospect by the market participants to have been the necessary and the right course of action towards stabilizing global oil markets; and adhering to the approach of being proactive and pre-emptive, the Participating Countries have reiterated their readiness to meet at any time and take immediate additional measures to address market developments and support the balance of the oil market and its stability if necessary.”

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OPEC said: “The Participating Countries decided to reaffirm the decision of the 10th OPEC and non-OPEC ministerial meeting on April 12, 2020, and further endorsed in subsequent meetings, including the 19th OPEC and non-OPEC ministerial meeting on July 18, 2021, and the 33rd OPEC and non-OPEC ministerial meeting on October 5, 2022.

Interestingly, ”This includes the adjustment of the frequency of the monthly meetings to become every two months for the Joint Ministerial Monitoring Committee, JMMC, and the authority of the JMMC to hold additional meetings, or to request an OPEC and non-OPEC ministerial meeting at any time to address market developments, if necessary. “This reiterates the critical importance of adhering to full conformity and compensation mechanism taking advantage of the extension approved on the 33rd OPEC and non-OPEC Ministerial Meeting.

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