OPEC and non-OPEC producers agree to cut crude output for 6 months of 2019

  08 December 2018    Read: 1505
OPEC and non-OPEC producers agree to cut crude output for 6 months of 2019

The Organization of the Petroleum Exporting Countries has agreed with Russia and other non-OPEC allies to cut crude oil production by 1.2 million barrels per day for the first 6 months of 2019, OPEC said in a statement.

OPEC clinched the deal with allied oil-producing nations including Russia at its headquarters in Vienna, Austria on Friday during the 5th OPEC and non-OPEC Ministerial Meeting was held in Vienna, Austria, on Friday, 07 December 2018, under the Co-Chairmanship of OPEC’s President, HE Suhail Mohamed Al Mazrouei, Minister of Energy & Industry of the United Arab Emirates and Head of its Delegation, and HE Alexander Novak, Minister of Energy of the Russian Federation.

OPEC 175th Meeting, 5th OPEC and non-OPEC Ministerial Meeting and its Joint Technical Commission (JTC) meeting reviewed the Secretary General’s report, the report and recommendations made by the Joint Ministerial Monitoring Committee (JMMC), whose work was supported by the Joint Technical Committee (JTC) and the OPEC Secretariat, the report of the Economic Commission Board, as well as various administrative matters.

175th Meeting of the Conference of the OPEC discussed the increasing market volatility and the broad consensus on the prospects for 2019 that suggests higher supply growth than global requirements, taking into account prevailing uncertainties.

Accordingly, the 5th OPEC and non-OPEC Ministerial Meeting, held on December 7th, following deliberations on the immediate oil market prospects and in view of a growing imbalance between global oil supply and demand in 2019, hereby decided to adjust the overall production by 1.2 mb/d, effective as of January 2019 for an initial period of six months. The contributions from OPEC and the voluntary contributions from non-OPEC participating countries of the ‘Declaration of Cooperation’ will correspond to 0.8 mb/d (2.5%), and 0.4 mb/d (2.0%), respectively.

The Meeting also decided that the next OPEC and non-OPEC Ministerial Meeting will convene in Vienna, Austria, in April 2019.

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