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The successes of the JMMC have been due to hard work and a spirit of comradery.

4

OPEC bulletin 2/18

7

t h

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

J MM C

Year two of the ‘Declaration of

Cooperation’ kicks-off in Oman

The city of Muscat in the Sultanate of Oman was a fitting location

for the first meeting of the Joint Ministerial Monitoring Committee

(JMMC) in 2018. Omani-OPEC relations have exemplified the best

facets of the OPEC-non-OPEC partnership for three decades. The

gracious hospitality and immaculate preparations by the Omani side

ensured that the second year of the ‘Declaration of Cooperation’ got

off to the best possible start. The

OPEC Bulletin

reports.

What a difference a year makes!

When the JMMC convened for the first time in Vienna,

on January 22, 2017, the circumstances were very differ-

ent than they were for the first JMMC meeting of 2018.

Many voices in the industry had greeted the nascent

‘Declaration of Cooperation’ with a degree of skepticism,

doubting that it would be effective or that conformity

would be high. OECD inventories stood at 339 million

barrels above the five year average. The institutionali-

zation of the ‘Declaration of Cooperation’ was at a very

early stage. In December 2016, world economic growth

was forecasted at just 3.1 per cent for 2017.

As delegates, journalists and industry analysts

descended on Muscat in January 2018, the story was very

different. Not only had the ‘Declaration of Cooperation’

partnership held together; it was thriving. The JMMC,

with the solid support of the OPECSecretariat, had estab-

lished a procedure which ensured high-quality techni-

cal exchange and sharp analyses, facilitating useful dis-

cussions on market developments. Some of the same

commentators who cast doubts on the ‘Declaration of

Cooperation’ when it was signed were calling for the

extension of the voluntary adjustments in production to

be continued and were supportive of expanding the part-

nership in new ways. Following stunning conformity lev-

els with the voluntary adjustments in production, which

averaged 107 per cent per month during 2017, OECD

inventories had been reduced to 118m b above the five-

year average by December 2017. The forecast for global

economic growth had dramatically improved, rising to

3.7 per cent for 2017 and 2018. The dark clouds which