The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries will adhere to the overall conformity level of 100 percent as of July 1, 2018, which will add around 1 million barrels a day to global oil supply.
According to OPEC’s statement released on Saturday, the countries will strive to adhere to the overall conformity level for the remaining duration of the Declaration of Cooperation (DOC) and for the Joint OPEC and Non-OPEC Ministerial Monitoring Committee (JMMC) to monitor the overall conformity level and report back to the OPEC and non-OPEC Ministerial Meeting.
'The member countries have exceeded the required level of conformity that had reached 152 percent in May 2018,' a press release from the organization said.
According to Suhail Mohamed Al Mazrouei, Minister of Energy and Industry of the United Arab Emirates and Alexander Novak, Minister of Energy of the Russian Federation, the return to 100 percent of conformity level by the end of the year would result in about 1 million barrels daily increase in oil production.
The first joint OPEC and non-OPEC Producing Countries' Ministerial Meeting was held on Dec. 10, 2016 to accelerate the stabilization of the global oil market through adjustments in total oil production of around 1.8 million barrels per day. As a result, member and participating countries decided to adjust oil production from Jan. 1.
At the second joint ministerial meeting, held on May 25, participants decided to prolong the output deal for another nine months starting July 1. Furthermore, at the third meeting on Nov. 30, the countries' ministers agreed to extend the oil cut pact until 2018.
The JMMC was established based on a decision taken following OPEC's 171st ministerial conference on Nov. 30, 2016.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr