A meeting now closed
The Opec+ member countries, signatories of the Declaration of Cooperation, started the work of their 12th ministerial meeting this Thursday. This meeting, which took place at the end of today's session, aimed to reach an agreement on the levels of production cuts at the beginning of 2021. This, in a market still shaken by the crisis linked to Covid-19.
The meeting was chaired by Prince Abdul Aziz Bin Salman, Saudi Energy Minister, and Alexander Novak, Co-President of Opep+ and Deputy Prime Minister of Russia. The purpose of the meeting is the ability of states to extend their April decision on the 7.7 mbpd cut.
Originally planned for the period from 1 August to the end of December 2020 (the 7.7 mbpd cut), Opep+ members want to decide on the possibility of extending this deadline beyond December 2020. According to the provisions of the initial agreement (the one currently in force), the drop in production is expected to drop to 5.8 mb/d between January 1, 2021 and April 2022.
A slight modification of the initial agreement
With the adoption of the new agreement, the Opep andits partners will have to begin to relax the framework of their production. Production will thus increase by nearly two million barrels per day (2 mb/d), from 5.8 mbpd to the 7.7 mbpd decided in April.
However, the second wave of the Covid-19 pandemic remains a problem. The members of Opep+ then decided to think about the necessary provisions that will allow them to adapt to the oil market data.
The meeting was originally scheduled for Tuesday. It was then rescheduled for Thursday at 2:00 p.m., and then rescheduled two hours later. The aim of this delay was to allow the maximum number of consultations before the start of the meeting, which is now closed.
Furthermore, on Monday, the Opep Conference held its 180th meeting. It was held by videoconference and chaired by Abdelmadjid Attar, Algerian Minister of Energy and current President of the Opec Conference. It was also he who examined the question of the withdrawal of 7.7 mb/d from the market. This is for the period from 1 January to the end of March, i.e. a further three months.
The other activities carried out by Opep+ are as follows
After Monday's summit, Tuesday and Wednesday were marked by discussions between Opec and its partners. The objective of these is to reach a favorable agreement adapted to the oil demand and to all the producing countries.
In addition, the 23 member countries of the Opep+, composed of 13 Opep countries and 10 oil producing countries, decided on another important point on Thursday. These include the assessment of the level and implementation of commitments on production cuts.