The OPEC and Non-OPEC Joint Ministerial Monitoring Committee (JMMC) convened in Abu Dhabi, United Arab Emirates, for its eleventh meeting on Nov. 11, 2018 considers to cut the productions in 2019.
At the meeting, the committee’s communique sets up a potential agreement to throttle back production when the entire group meets in Vienna, Austria on Dec.5.
OPEC and a group of oil producers including Russia began cutting their output in January 2017 in order to drain a global crude glut that sent oil prices from over US$100 a barrel to under US$30. In June, the group agreed to restore some of that output after its members cut more deeply than they intended and as oil prices hit 3 and half-year highs.
The JMMC acknowledged the achievements of participating producing countries of the Declaration of Cooperation (DoC) and their continuous efforts in pursuing a balanced and sustainably stable global oil market, serving the interests of consumers, producers, the industry and global economy at large. Additionally, the JMMC noted that
countries participating in the DoC have achieved a conformity level of 104% in October 2018.
The Committee reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements, taking into account current uncertainties. The group producers also noted that the dampening of global economic growth prospects, in addition to associated uncertainties, could have
repercussions for global oil demand in 2019 – and could lead to widening the gap between supply and demand.