english issue
Oil Market
OPEC suffers
in silence
By Lies Sahar
In spite of the drop in oil price
fewer than 50 dollars, the OPEC
countries remain optimistic about
the target aiming at rebalancing
the market, even if this must
take time. Otherwise, how to
construe the conclusions of the
Monitoring Committee, gathering
representatives of OPEC and
non OPEC countries, about the
implementation of oil production
cut. During its last meeting held
on June 22 nd in Vienna, OPEC
and non OPEC Joint Ministerial
Monitoring Committee (JMMC)
declared that, on the basis of the
report of the OPEC and Non- OPEC
Joint Technical Committee (JTC)
for the month of May 2017, OPEC
and non – OPEC participating
countries recorded the highest
conformity with their intentional
production adjustments, reaching
a level of 106%. In the official
statement, the Committee
“expressed its great satisfaction
regarding the regular increase in
the total levels of conformity of
OPEC and non-OPEC participating
oil producers from January to May
2017, exceeding 100% in April and
in May to reach its highest level
since January 2017.” Adding that
“In May 2017, OPEC and non -OPEC
participating countries reached a
level of conformity of 106 percent,
that is to say an increase of 4
percentage points compared to
the performance of April 2017. “
For the Committee, “It is about a
convincing demonstration of the
willingness of all the participating
countries to continue their
co-operation until the set objective
is reached.” And concerning this
objective, the Committee estimated
that the market is making progress
in the right way, declaring that it
“noticed the recent development
of the market and has confidence
in the progress of the oil market
in the right way which will enable
the fulfillment of the objectives of
the Co-operation Declaration and
encourage all the participating
countries to put pressure on the
total conformity and to maintain
this level for the benefit of the
producers and the consumers”.
The Monitoring
Committee is
optimistic
It should be reminded that the
second joint ministerial meeting
of the OPEC and non OPEC oil
producing countries decided on May
25th to prolong the oil production
cut of 1.8 million barrels per day
for more nine months starting
from July 1st, 2017. This position
expressed by the Joint Technical
Committee is based on the fact that
the oil producing countries do not
expect a rebalancing of the market
before the first half of the next year.
The next meeting of the Joint
Committee, which will be held in
Saint-Petersburg, in Russia, on
July 24th , 2017 could result again
in the same conclusions as those
expressed on June 22 nd in Vienna.
As a reminder, the Committee
is composed of the Ministers of
Kuwait, Russia, Venezuela, Algeria
and Oman.
However, debates already
took place on the poss