The Joint OPEC and non-OPEC Ministerial Monitoring Committee (JMMC), which was set up to ensure the successful implementation of production adjustments, made its inaugural meeting in Vienna and agreed on measures to ensure production cuts, the cartel announced on Sunday.
The JMMC was established following OPEC’s meeting on Nov. 30, 2016 and the subsequent joint OPEC and non-OPEC ministerial meeting held in December 2016, the cartel noted.
At November's meeting, OPEC members unanimously agreed to lower oil production by 1.2 million barrels per day, and eleven non-OPEC oil producers agree to cut oil output to achieve market stability at the joint ministerial meeting in December.
The committee is composed of three OPEC member countries – Algeria, Kuwait and Venezuela and two non-OPEC countries – the Russian Federation and Oman.
In its first meeting, the JMMC discussed a framework for the realization of voluntary production adjustments, according to OPEC's statement.
Additionally, the committee agreed to the full and timely adherence to the output cut agreement with certain conditions.
Under these conditions, the OPEC secretariat will present a monthly production data report on member countries’ crude oil output and of participating non-OPEC oil liquid production to the JMMC by the 17th of each upcoming month.
JMMC noted that they will evaluate based on production data only as to whether the participating countries have conformed to their output agreement.
Each committee member country will nominate one technical contact person to form a Joint Technical Committee (JTC), the cartel stated.
The JTC will regularly cooperate with the OPEC secretariat in preparing the monthly report for the JMMC and meet on a monthly basis before submitting their report to the JMMC.
The JMMC will communicate monthly, after the 17th of each upcoming month, to consider the reports presented by the JTC and the OPEC Secretariat, as well as meet after the March 17, 2017 and before the OPEC conference in May 2017, the statement read.
The committee will issue a monthly press release on the progress towards the implementation of the output cut decision and will report the effect of the implementation to the market.
By Dilara Zengin
Anadolu Agency
dilara.zengin@aa.com.tr