The Organization of Petroleum Exporting Countries (OPEC) reaches consensus on production levels for market stability at the 35th Ministerial Meeting. At the 35th OPEC and non-OPEP ministerial meeting, Members reached consensus on production levels, led by OPEC President H.E. Antonio Oburu Ondo, Minister of Mines and Hydrocarbons of Equatorial Guinea
In an effort to emulate OPEC’s commitment to market stability, the recent OPEC and non-OPEP ministerial meeting in Vienna on 4 June 2023 witnessed a unanimous agreement among participants on crucial resolutions, thus generating a favourable dynamic within the energy market and guaranteeing stability for stakeholders including both consumers and producers.
During the meeting, chaired by OPEC President H.E. Antonio Oburu Ondo, Minister of Mines and Hydrocarbons of Equatorial Guinea, the participating countries reaffirmed their commitment to the framework of the Declaration of Cooperation (DoC) and the Charter of Cooperation, that have been instrumental in promoting collaboration between OPEC and non-OPEC members. The commitment to the DoC and the Charter of Cooperation demonstrates OPEC’s efforts to meet market challenges and maintain the stability of the global oil market.
One of the main agreements reached at the meeting was the adjustment of global crude oil production levels for OPEC and non-OPEC participating countries. From 1 January 2024 until 31 December 2024, the production level will be set at 40.46 million barrels per day (mb/d).
The meeting also stressed the importance of an agreement with the DoC, with crude oil production being monitored on the basis of information from secondary sources, according to the methodology established for OPEC member countries. Full compliance with agreed production levels was reaffirmed as crucial to ensure market stability and a balance between supply and demand.
Saudi Arabia played an important role in the discussions and decisions made during the meeting. Saudi Arabia’s oil minister, Prince Abdulaziz bin Salman, made a commitment to African delegates and met with the United Arab Emirates (UAE) on the issue of production quotas, suggesting a reduction in production quotas for some African countries. While some tensions have arisen, it is important to note that the ultimate goal of Saudi Arabia, and indeed the organization as a whole, is to find a balance that benefits both consumers and producers.
Current market volatility is a concern for all stakeholders as it negatively affects both consumers and producers. Recognizing this, OPEC has taken a cautious and proactive approach, focusing on stabilizing crude oil prices. Recent decisions taken during the meeting, as well as the extended mandate of the Joint Ministerial Monitoring Committee (JMMC), demonstrate OPEC’s commitment to closely monitor global oil market conditions and ensure that agreed production levels are met.
The 36th OPEC and non-OPEC ministerial meeting is scheduled for 26 November 2023 in Vienna. The continuity of these meetings, as well as the authority granted to the JMMC to convene additional meetings if necessary, underscores OPEC’s responsiveness to market developments.
As the energy market evolves, the consensus reached at the 35th OPEC and non-OPEC ministerial meeting reflects a concerted effort to stabilize the market and promote sustainable growth. With the arrival of the Minister of Mines and Hydrocarbons of Equatorial Guinea, H.E. Antonio Oburu Ondo, OPEC stands ready to continue its crucial role in providing long-term guidance and ensuring a stable oil market for the benefit of consumers and producers.
The consensus reached by participants reflects a positive step towards market stability and the commitment of all parties involved to balance supply and demand. Maintaining a stable market is critical as volatility can have adverse effects on consumers and producers. In addition, we recognize and support Saudi Arabia’s statements that emphasize the importance of stability and cooperation in the oil market,” said OPEC President Antonio Oburu Ondo. Minister of Mines and Hydrocarbons of Equatorial Guinea. The African Chamber of Energy endorses the decisions taken by OPEC.
