OPEC commends UAE commitment to production adjustment

OPEC has commended the UAE’s commitment to adhere to its production adjustments for "the remaining period of the Declaration of Cooperation."

The Declaration was 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 a concerted effort to accelerate the stabilisation of the global oil market through voluntary adjustments in total production of around 1.8 million b/d.

"The Joint OPEC-Non-OPEC Ministerial Monitoring Committee, JMMC, welcomed the participation of the UAE at the recent JTC meeting, where the UAE reiterated its commitment to adhere to its production adjustments for the remaining period of the Declaration of Cooperation," said JMMC in a press release.

The Abu Dhabi National Oil Company, ADNOC, on Monday said it would cut its October 2017 crude supplies by 10 percent across its three export grade: Murban, Das and Upper Zakum, to meet commitments under an OPEC deal to curb output. The development comes as OPEC is trying to improve compliance among its members to an agreement reached between OPEC and non-OPEC oil producers last year.

"The JMMC took note of the recent market developments and expressed confidence that the oil market is moving in the right direction towards the objectives of the Declaration of Cooperation. In particular, global oil demand growth in 2017 is now better than expected, while for 2018, world oil demand is anticipated to rise further," added JMMC.

The Declaration, which came into effect on 1 January 2017, was for six months. The 2nd ministerial meeting, held on 25 May 2017, decided to extend the voluntary production adjustments for another nine months commencing 1 July 2017.

"As of July 2017, the OPEC and participating non-OPEC producing countries achieved an impressive conformity level of 94 percent. This is a demonstration of the commitment of participating producing countries to continue their cooperation towards the rebalancing of the market."

The next JMMC meeting is scheduled to be held in Vienna, on 22 September 2017.