The 13th meeting of OPEC+ Joint Ministerial Monitoring Committee was held in Baku

The 13^th meeting of OPEC+ Joint Ministerial Monitoring Committee was held in Baku at the initiative of the President of Azerbaijan. OPEC Secretary General Mohammad Barkindo, OPEC President, the Oil Minister of Venezuela and the President of the State Oil Company Manuel Kevedo Fernandez, the Chairman of the Joint Monitoring Committee, the Minister of Energy, Industry and Natural Resources of Saudi Arabia, Khaled Abdulaziz Al-Falih attended the meeting. The ministers and high-level delegation of OPEC countries such as Algeria, UAE, Kuwait, Iraq, Libya, Nigeria, Congo, and non-OPEC countries - Russia, Kazakhstan, Bahrain and Brunei also attended the event.

The Minister of Energy Parviz Shahbazov delivered a speech and expressed his gratitude for accepting an offer to hold OPEC+ event in Baku, the ancient land of oil. Organization of this event in Azerbaijan, the first country where oil was produced by utilizing the industrial method, the homeland of the first offshore platform, the country where the first oil pipeline was constructed, was considered as an important event in the history of the oil industry. The Minister characterized the current role of Azerbaijan in the development of the world’s oil industry with the establishment of OPEC+ format and with its active involvement in this process to stabilize the oil price. According to the minister, OPEC+ format is an effective cooperation platform which has an impact on the global energy market. “The decision made have successful outcomes. There is solidarity among the members of the agreement. This solidarity provides the necessary steps for the oil price stability and demand-supply balance. The meetings of OPEC+ ministers and the meetings of the Joint Monitoring Committee are important for the oil producers, oil consumers and the world economy. Because, based on these discussions, limits for future development are identified.”

The Minister once again stated that Azerbaijan was ready to provide support for the balance of the oil market.

The Chairman of the Joint Monitoring Committee, Khaled Abdulaziz Al-Falih mentioned that the positive changes in the oil market were observed compared to the last quarter of the last year, but still there were some risks and due to this fact the participants had to take serious measures. According to the chairman, now the main goal is to maintain the oil production at the preferred level. Adoption of the Cooperation Charter in future which was discussed by OPEC and non-OPEC countries will ensure continuous support in regulating the oil market.

The Deputy Energy Minister of Russia, Pavel Sorokin highly appreciated the impact of December decision on the oil market. He noted that Russia would strengthen its commitment and efforts to cooperate on OPEC+ agreement and to fulfill its obligations.  

OPEC President, the oil minister of Venezuela Manuel Kevedo Fernandez introduced the oil production result in his country and stated that even though according to the “Declaration of Cooperation” Venezuela was exempted from its liabilities, Venezuela was providing the global oil market with significant support. 

Following the greeting speeches, OPEC presentation based on the analysis of the pace of market development and the report of the Joint Technical Commission on the production results for February were introduced.

It was noted that since December 2016 the “Declaration of Cooperation” of the Joint Ministerial Monitoring Committee played a key role in promoting stability in the oil market, and the participating countries have obligations to continue this process.

Regarding OPEC+ countries, the fulfilment of these obligations has increased from 83% to 90% in February compared to January. The Committee emphasized the serious uncertainties in the global market and stated that all participants were responsible for stabilizing the market and preventing a further downturn in the current market. All the members including the countries not participating in the event were summoned to fully fulfil the obligations taken in accordance with the decision approved at the 5^th OPEC and non-OPEC Ministerial Meeting on December 7, 2018. Moreover, the Ministerial Meeting planned for April was postponed and it was agreed to hold the next meeting of OPEC and non-OPEC Joint Ministerial Monitoring Committee in May in Jeddah, Saudi Arabia.

Iraq, Kazakhstan, Nigeria and the United Arab Emirates (UAE) have been elected as the new members of OPEC+ Joint Ministerial Monitoring Committee.