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The (OPEC +) alliance stresses the importance of preserving efforts to rebalance the oil market

27-04-2021

The Producers' Alliance (OPEC +) stressed today, Tuesday, the importance of continuing the current efforts aimed at maintaining the balance of the oil market. A statement issued by the Organization of Petroleum Exporting Countries (OPEC) in Vienna at the conclusion of the 16th Ministerial Meeting of the Organization and non-member producing countries through video conference technology said that the continuous positive contributions of the countries declaring cooperation in support of rebalancing the global oil market in line with Historic decisions taken by the OPEC + alliance. The statement indicated that the meeting highlighted the ongoing recovery in the global economy supported by unprecedented levels of monetary and financial support, noting that the economy is expected to recover quickly in the second half of this year. But the gathering warned of the increasing cases of the new Corona virus in a number of countries despite the ongoing vaccination campaigns and that the re-emergence of new strains could impede the recovery of the global economy and oil demand. The statement said that the overall compliance rate for production adjustments reached 115 percent in March 2021, reinforcing the trend of higher compliance by participating countries. The meeting expressed its appreciation to the participating countries that had achieved exceeding expectations in March 2021, with the total volumes exceeding 1.23 million barrels per day. In spite of this, some participating countries are still required to meet the minimum expectations of 100 percent compliance and compensation for excessive volumes in production. The meeting also indicated that the countries participating in DoC pledged to achieve full compliance and compensate for the deficiency in previous amendments during the compensation period, which extends until the end of September 2021. Representatives of the countries participating in the meeting stressed the importance of being vigilant, flexible and vigilant in light of unstable market conditions. The participants in the meeting recorded with gratitude the large additional voluntary adjustment to reduce the production of 1 million barrels per day carried out by the Kingdom of Saudi Arabia in April 2021 and the gradual return of these volumes in May, June and July 2021 due to the prevailing uncertainties surrounding the oil market.