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The OPEC Plus confirms the continued commitment of producers to stabilize the oil market

06-01-2021

The Ministries of oil has confirmed the OPEC Plus members on Tuesday, to commit the production quotas, in order to stabilize the global oil market. The thirteenth ministerial meeting of OPEC and the allied countries that came in this final statement, which indicated the countries to participate in the meeting that agreed to ensure a stable market for the countries that are producing common interest by securing adequate safe supplies crude to the consumers. A decision was taken by the (OPEC Plus) countries on April 12, that drew the meeting’s attention to adjust full production of crude oil, reducing level production and highlighting the unprecedented events of the year 2020. Also, the great negative impact of the (Corona emerging epidemic-Covid-19) of the economy and global markets. The contribution of the state members, commend to make large and long adjustments in the history of crude oil production. Also, in response to the exceptional challenges that the oil market is facing and the emergency conditions that was spread by the epidemic. There were factors that led to fragility in the revival of economics, such as the statement that pointed out the increase of the disease, lack of uncertainty and the extremely restrictive general lockdown. However, the producers have expected in their statement that this situation will be continue until 2021, and the market sentiment has recently increased with vaccination programs. Also, they were strictly stressed and in need for caution intentions, due to weak demands, weak refiners’ margin and other uncertainties basics. According to the speed limits, the meeting has reconsidered of returning two billion barrels to the market per day, due to the development and conditions of the market. The recent decision of the proactivity was approved to raise the rate production by 500 thousand barrels per day, amendment of production from 7.7 to 7.2 million barrels starting from January 2021. The market conditions on the monthly periodic review as the statement mentioned, the amendments will be implemented for the production level for February and March 2021. The attenders reiterated the need to continue monitoring market fundamentals, which includes supplies outside the OPEC Plus countries, and its impact on the balance of the global oil and market stability in general. The conformity high levels have significantly contributed to rebalance of the market, as it was noted and expressed their appreciation to the countries, the alliance whose performance was exceeded with expectations, especially the United Arab Emirates and Angola. At the same time, the meeting affirmed the crucial importance of a commitment to matching and exposing excessive production quantities. In order, to achieve the goal to rebalance the market and avoid unjustified delay in the process. All countries that have not complied have been invited, to submit their plans to require the implement compensation for excess production to the OPEC secretariat by January 15. The Minister of oil Dr.Muhammad Al-Faris, and the new Kuwaiti Minister of Electricity and Water were welcomed by the meeting to express their appreciation to his predecessor, Dr.Khaled Al-Fadhel, for his dedication in the process to controlling production and complying with quotas. The participants in the 13th ministerial meeting of the OPEC and the allied countries, have decided to postpone the next meeting of the Joint Committee for Market Monitoring on February 3.