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


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M e e t i n g o f t h e J o i n t M i n i s t e r i a l M o n i t o r i n g C o m m i t t e e

The JTC report also highlighted several positive indi-

cators that could provide support to the market in the

months ahead, including rising demand, continued high

levels of conformity and the falling overhang of OECD

commercial oil stocks

“Oil demand is expected to increase significantly

in 2H17 compared to 1H17, with the growth reaching a

level of 2 million barrels/day, which should sustain the

inventory draws,” the press release stated, referring to

the JTC report.

“Furthermore, the participating OPEC and non-OPEC

producing countries achieved a conformity level of 98

per cent in June 2017, the same level of high conform-

ity observed for the first six months from January to June

2017. Also, the overhang of OECD commercial oil stocks

above the five-year average level has fallen by 90m b for

the period from January to June 2017 and now stand at

250m b.”

The JMMCpointed out, however, that despite the high

level of conformity at the aggregate level, there was still

room for improvement by some participating countries,

and urged all participating producers to press onwards

towards 100 per cent conformity for the remaining period

of the ‘Declaration of Cooperation’.

Supply growth moderating

The JMMC noted that new final investment decisions

related to oil company projects had fallen significantly

below historic averages, which could moderate future

supply growth.

“Shale oil projects, which have been the source of a

sizable share of oil supply growth in the past three years,

are going through a period of slowing well productiv-

ity, accelerating cost inflation, deceleration of rig count

growth and constrained capital market access,” the press

release stated.

The JMMC also reviewed the presentations made by

Libya and Nigeria on their production recovery plans,

prospects and challenges, acknowledging the upside

limitations of both countries to go beyond their current

production levels.

“Once their production levels stabilize, participating

producing countries should further cooperate in amanner

that contributes to the stabilization of the market,” the

press release added. “The JMMC will continue to moni-

tor and recommend further actions, including the hold-

ing of an Extraordinary Meeting of the Conference of the

24 producing countries, if needed.”

The JMMC comprises the Oil and Energy Ministers of OPEC Members Algeria (Mustapha Guitouni, second r), Kuwait (Issam

A Almarzooq, third r — Committee Chairman) and Venezuela (Dr Nelson Martinez, second l), as well as non-OPEC Oman

(Mohammed Hamad Al Rumhy, l) and the Russian Federation (Alexander Novak, third l). Pictured with Khalid A Al-Falih (c),

Minister of Energy, Industry & Mineral Resources, Saudi Arabia, and President of the OPEC Conference; and Mohammad

Sanusi Barkindo (r), OPEC Secretary General.

OPEC bulletin