BY BAMIDELE FAMOOFO
The Organisation of Petroleum Exporting Countries and non-OPEC countries have announced a 1.66 million barrel per day cut in output beginning from May 2023.
The decision was reached at the 48th meeting of the Joint Ministerial Monitoring Committee which took place via videoconference on Monday, April 3, 2023.
The decision was a precautionary measure aimed at supporting the stability of the oil market.
The meeting noted the following voluntarily production adjustment announced on April 2, 2023 by Saudi Arabia (500 thousand b/d); Iraq (211 thousand b/d); United Arab Emirates (144 thousand b/d); Kuwait (128 thousand b/d); Kazakhstan (78 thousand b/d); Algeria (48 thousand b/d); Oman (40 thousand b/d); and Gabon (8 thousand b/d) starting May until the end of 2023.
These will be in addition to the production adjustments decided at the 33rd OPEC and non-OPEC Ministerial Meeting,
The above will be in addition to the announced voluntary adjustment by the Russian Federation of 500 thousand barrels per day until the end of 2023, which will be from the average production levels as assessed by the secondary sources for the month of February 2023.
The committee reviewed the crude oil production data for the months of January and February 2023 and noted the overall conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).
The members of the JMMC reaffirmed their commitment to the DoC which extends to the end of 2023 as decided at the 33rd OPEC and non-OPEC Ministerial Meeting (ONOMM) on 5th of October 2022, and urged all participating countries to achieve full conformity and adhere to the compensation mechanism.
