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5

OPEC bulletin 3–4/17

C o n f e r e n c e N o t e s

a conformity level of 94 per cent, which represented an

increase of eight percentage points over the January 2017

performance.

“This demonstrates the willingness of all participat-

ing countries to continue their cooperation,” stressed

the release.

Inventory drawdowns

The JMMC comprises the Oil and Energy Ministers of

OPEC Members Algeria (Noureddine Boutarfa), Kuwait

(Issam A Almarzooq — Committee Chairman) and

Venezuela (Dr Nelson Martinez), as well as non-OPEC

Oman (Mohammed Hamad Al Rumhy) and the Russian

Federation (Alexander Novak). Also attending the lat-

est meeting by special invitation was Jabbar Ali Hussein

Al-Luiebi, Oil Minister of Iraq; Suhail Mohamed Al

Mazrouei, Minister of Energy of the United Arab Emirates;

and Adeeb Al-Aama, Saudi Arabia’s OPEC Governor.

The press release pointed out that certain factors

had slowed down the positive impact of the production

adjustments on inventory drawdowns.

These factors included low seasonal demand, refin-

erymaintenance and rising non-OPEC supply. At the same

time, said the release, the liquidation of positions by

financial players in the market had also been observed.

However, the Committee maintained that the end of

the refinery maintenance season, coupled with a noticea-

ble slowdown in the United States oil stock-build and the

reduction in floating storage, “would support the positive

efforts undertaken to achieve stability in the market.”

The JMMCwas established following the 171

st

Meeting

of the OPEC Conference in Vienna on November 30, 2016,

and the subsequent ‘Declaration of Cooperation’ reached

at the Joint OPEC/non-OPEC Ministerial Meeting in the

Austrian capital on December 10.

The press release noted that under the ‘Declaration’,

OPEC and the 11 participating non-OPEC oil-producing

countries were cooperating in a concerted effort to accel-

erate the stabilization of the global oil market through

voluntary adjustments in combined production of around

1.8 million barrels/day.

It explained that the ‘Declaration of Cooperation’,

which came into effect on January 1, 2017, was for the

first six months of the year, but was extendable for an

additional six months, depending on the status of sup-

ply and demand, including global inventories.

In view of the current situation, the JMMC requested

that the JTC, along with the OPEC Secretariat in Vienna,

review the oil market conditions “and revert to the JMMC

in April 2017 regarding the extension of the voluntary pro-

duction adjustments as stipulated in the ‘Declaration of

Cooperation’, in order to ensure market stability.”

The press release added: “The JMMC will deliberate

Issam A Almarzooq (c), Minister of Oil and Minister of Electricity and Water, Kuwait, and JMMC Chairman; with Alexander Novak (l), Minister of

Energy, Russian Federation; and Mohammad Sanusi Barkindo (r), OPEC Secretary General.