The 21st Meeting of the OPEC Joint Ministerial Monitoring Committee (JMMC) took place on Wednesday, 19 August 2020.
The videoconference was chaired by Saudi Arabia’s Minister of Energy, His Royal Highness Prince Abdul Aziz Bin Salman, and the co-chair, the Minister of Energy in Russia, His Excellency Alexander Novak.
The historic decision of the Participating Countries in the Declaration of Cooperation (DoC) at the 10th Extraordinary OPEC and non-OPEC Ministerial Meeting that held on April 12, 2020, to cut down on crude production and global supply, and the unanimous decisions that were taken at the 179th Meeting of the OPEC Conference and the 11th OPEC and non-OPEC Ministerial Meeting on June 6, 2020, were recalled.
The Committee reviewed the monthly report prepared by the Joint Technical Committee (JTC) and reviewed the development of the global oil market since its last meeting on July 15 2020. The market prospects and projections for the second half of 2020 and 2021 were also reviewed.
The Committee reviewed the crude oil production data for July 2020 and praised the overall conformity of the participating OPEC and non-OPEC countries of the DoC, including Mexico. The conformity for July was up to 97%,
The laggards of the production cut agreement reaffirmed their commitment to compensating for their shortfall in May, June and July, by the end of September. All underperforming countries were asked to submit their compensation implementation plans to the OPEC Secretariat on or before August 28 2020.
The JTC and the OPEC Secretariat were tasked to monitor the implementation of the required compensation by the underperforming countries and report to the JMMC.
The Committee agreed that although there has been gradual progress recorded in the recovery of the market, the progress has been slow and filled with significant uncertainties as there is a high chance of a prolonged COVID-19 wave.
The next meeting of the JTC is scheduled for September 16, 2020, while that of the JMMC is scheduled for September 17 2020.
Read the full press release of the meeting here:
%20took%20place%20on%20Wednesday,%2019%20August%202020.a%20href=https://ibekachikwu.com/wp-content/uploads/2020/08/eb47036a-9b26-422d-b34a-c2a926eebd77.jpgimg%20class=size-medium%20wp-image-2505%20aligncenter%20src=https://ibekachikwu.com/wp-content/uploads/2020/08/eb47036a-9b26-422d-b34a-c2a926eebd77-300x169.jpg%20alt=%20width=300%20height=169%20//aThe%20videoconference%20was%20chaired%20by%20Saudi%20Arabia's%20Minister%20of%20Energy,%20His%20Royal%20Highness%20Prince%20Abdul%20Aziz%20Bin%20Salman,%20and%20the%20co-chair,%20the%20Minister%20of%20Energy%20in%20Russia,%20His%20Excellency%20Alexander%20Novak.The%20historic%20decision%20of%20the%20Participating%20Countries%20in%20the%20Declaration%20of%20Cooperation%20(DoC)%20at%20the%2010th%20Extraordinary%20OPEC%20and%20non-OPEC%20Ministerial%20Meeting%20that%20held%20on%20April%2012,%202020,%20to%20cut%20down%20on%20crude%20production%20and%20global%20supply,%20and%20the%20unanimous%20decisions%20that%20were%20taken%20at%20the%20179th%20Meeting%20of%20the%20OPEC%20Conference%20and%20the%2011th%20OPEC%20and%20non-OPEC%20Ministerial%20Meeting%20on%20June%206,%202020,%20were%20recalled.The%20Committee%20reviewed%20the%20monthly%20report%20prepared%20by%20the%20Joint%20Technical%20Committee%20(JTC)%20and%20reviewed%20the%20development%20of%20the%20global%20oil%20market%20since%20its%20last%20meeting%20on%20July%2015%202020.%20The%20market%20prospects%20and%20projections%20for%20the%20second%20half%20of%202020%20and%202021%20were%20also%20reviewed.The%20Committee%20reviewed%20the%20crude%20oil%20production%20data%20for%20July%202020%20and%20praised%20the%20overall%20conformity%20of%20the%20participating%20OPEC%20and%20non-OPEC%20countries%20of%20the%20DoC,%20including%20Mexico.%20The%20conformity%20for%20July%20was%20up%20to%2097%,The%20laggards%20of%20the%20production%20cut%20agreement%20reaffirmed%20their%20commitment%20to%20compensating%20for%20their%20shortfall%20in%20May,%20June%20and%20July,%20by%20the%20end%20of%20September.%20All%20underperforming%20countries%20were%20asked%20to%20submit%20their%20compensation%20implementation%20plans%20to%20the%20OPEC%20Secretariat%20on%20or%20before%20August%2028%202020.The%20JTC%20and%20the%20OPEC%20Secretariat%20were%20tasked%20to%20monitor%20the%20implementation%20of%20the%20required%20compensation%20by%20the%20underperforming%20countries%20and%20report%20to%20the%20JMMC.The%20Committee%20agreed%20that%20although%20there%20has%20been%20gradual%20progress%20recorded%20in%20the%20recovery%20of%20the%20market,%20the%20progress%20has%20been%20slow%20and%20filled%20with%20significant%20uncertainties%20as%20there%20is%20a%20high%20chance%20of%20a%20prolonged%20COVID-19%20wave.The%20next%20meeting%20of%20the%20JTC%20is%20scheduled%20for%20September%2016,%202020,%20while%20that%20of%20the%20JMMC%20is%20scheduled%20for%20September%2017%202020.Read%20the%20full%20press%20release%20of%20the%20meeting%20a%20href=https://www.opec.org/opec_web/en/press_room/6079.htmhere/a:){kind=link}