OPEC Achieves Consensus on Production Levels for Market Stability at 35th Ministerial Meeting

In an effort that mirrors OPEC's commitment to market stability, the recent convening of the OPEC and non-OPEC Ministerial Meeting in Vienna on June 4, 2023, saw unanimous agreement among participants on pivotal resolutions, engendering favourable momentum within the energy market and ensuring stability for stakeholders including consumers and producers alike.

During the meeting, chaired by OPEC President H.E. Antonio Oburu Ondo, Equatorial Guinea’s Minister of Mines and Hydrocarbons, participating countries reaffirmed their dedication to the Framework of the Declaration of Cooperation (DoC) and the Charter of Cooperation, which have been instrumental in fostering collaboration between OPEC and non-OPEC nations. The commitment to the Doc and Charter of Cooperation demonstrates OPEC’s efforts to address market challenges and maintain stability within the global oil market.

One of the key agreements reached during the meeting was the adjustment of the overall crude oil production levels for OPEC and non-OPEC Participating Countries. Starting from January 1, 2024, until December 31, 2024, the production level will be set at 40.46 million barrels per day (mb/d).

The meeting also emphasized the importance of the agreement with the DoC, with crude oil production monitored based on information from secondary sources, following the established methodology for OPEC Member Countries. Adhering to full conformity with the agreed production levels was reiterated as crucial, ensuring market stability and balanced supply and demand dynamics.

Saudi Arabia played a significant role in the discussions and decisions made during the meeting. The Saudi Oil Minister, Prince Abdulaziz bin Salman, engaged with African delegates and held talks with the United Arab Emirates (UAE) to address production quotas, suggesting cuts in production quotas from some African countries. While some tensions arose, it is important to note that the ultimate aim of Saudi Arabia, and indeed the entire organization, is to strike a balance that benefits both consumers and producers.

The current market volatility has been a concern for all stakeholders, as it adversely affects both consumers and producers. Recognizing this, OPEC has taken a cautious and proactive approach, focusing on stabilizing crude oil prices. The recent decisions made during the meeting, in conjunction with the extended mandate of the Joint Ministerial Monitoring Committee (JMMC), demonstrate OPEC's commitment to closely monitoring global oil market conditions and ensuring adherence to the agreed production levels.

Looking ahead, the 36th OPEC and non-OPEC Ministerial Meeting is scheduled to take place on November 26, 2023, in Vienna. The continuity of these meetings, along with the authority granted to the JMMC to convene additional gatherings if needed, underscores OPEC's responsiveness to market developments.

As the energy market navigates evolving dynamics, the consensus reached during the 35th OPEC and non-OPEC Ministerial Meeting reflects a concerted effort to stabilize the market and promote sustainable growth. With the Equatorial Guinea Minister of Mines and Hydrocarbons, H.E. Antonio Oburu Ondo, assuming the Presidency, OPEC is poised to continue its crucial role in providing long-term guidance and ensuring a stable oil market for the benefit of consumers and producers alike.

“The consensus reached among participants reflects a positive step towards market stability and the commitment of all involved to balance supply and demand. It is crucial to maintain a stable market as volatility can have detrimental effects on both consumers and producers. Additionally, we acknowledge and support the statements made by Saudi Arabia, highlighting the importance of stability and cooperation in the oil market,” states, OPEC President H.E. Antonio Oburu Ondo, Equatorial Guinea’s Minister of Mines and Hydrocarbons.

The African Energy Chamber endorsed the decision of the OPEC Ministers.