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

7

JMMC Chairman: market on road to

rebalancing

The Chairman of the JMMC, Issam A Almarzooq,

who is also Kuwait’s Minister of Oil and Minister

of Electricity and Water, thanked the JTC for its

efforts and asked the Committee to keep up its

great work.

He stated that the oil market situation had

markedly improved since the last meeting of

the JMMC in St Petersburg in July, and that the

market seemed to be well on the way to rebal-

ancing. This was due to both the accelerated

destocking process in recent months and rising

demand, according to Almarzooq, as well as a

slight deceleration in expected 2018 non-OPEC

supply growth.

The most recent data for August 2017

showed that OECD commercial oil inventories

were around 170 million barrels above the five-

year average, compared with 340m b at the

beginning of the year.

The hurricanes which struck the US Gulf

Coast had some short-term repercussions on

rising US stock levels, he stated. The market

structure has also distinctly changed over the

past fewmonths, starting with a narrowing con-

tango, which, shortly before the meeting, had

flipped into backwardation.

He added that despite these improvements,

participating countries to the ‘Declaration of

Cooperation’ should not be complacent, but

continue to focus on reaching unprecedented

high conformity levels and lowering inventories

to return sustainable stability to the market.

Alexander Novak, Co-Chairman of the

JMMC, and Russia’s Minister of Energy.

Issam A Almarzooq, Chairman of the JMMC, and Kuwait’s Minister of Oil and Minister of

Electricity and Water.

OPEC bull

etin 10/17