OPEC & NON-OPEC AGREEMENT
No 23/2017 Vienna, Austria 25 May 2017
OPEC - 2nd OPEC and non-OPEC Ministerial Meeting concludes,
Following the conclusion of the 172nd Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) held today at the OPEC Secretariat in Vienna, Austria, Ministers from OPEC Member Countries met with their counterparts from non-OPEC oil producing countries that participated in the Declaration of Cooperation of 10 December 2016.
Today's 2nd OPEC and non-OPEC Ministerial Meeting was jointly chaired by HE Khalid A. Al-Falih, President of the OPEC Conference, and Minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, and HE Alexander Novak, Minister of Energy of the Russian Federation.
The OPEC and non-OPEC Ministerial Meeting recalled the earlier 30 November 2016 decision by OPEC Member Countries to implement production adjustments effective 1 January 2017 for a six-month period, and the subsequent decision of participating non-OPEC producers to the Declaration of Cooperation to also implement production adjustments on 10 December 2016 for the same period.
The parties noted that OPEC Member Countries met earlier in the day on 25 May 2017, as part of the 172nd Meeting of the OPEC Conference, where they took into account current oil market conditions, analyzed oil market developments since the OPEC Conference last met in Vienna at the end of November, and reviewed the oil market outlook for the remainder of 2017.
OPEC Member Countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan, taking into account the decision reached by OPEC at the 172nd Meeting of the Conference, recognized the need for continuing cooperation among oil exporting countries in order to achieve a lasting stability in the oil market.
In this regard, the aforementioned non-OPEC countries decided to extend their production adjustments, which originally started 1 January 2017, for a further period of nine months, beginning 1 July 2017.
The 14 OPEC Member Countries and 10 participating non-OPEC producing countries underscored the importance of continuing efforts to help stabilize the oil market, in the interests of all oil producers and consumers.
The Meeting thanked all OPEC and non-OPEC participating countries for their commitment, as reflected in the unprecedented conformity levels to the decisions taken. The Meeting participants reaffirmed their commitment, individually and collectively, to the decision to extend the voluntary production adjustments for a further nine-month period.
The Meeting expressed its deep appreciation to the commitment and valued contribution of the Joint Ministerial Monitoring Committee (JMMC) and the Joint Technical Committee (JTC) that have provided the transparency required in implementing the decisions taken last year in a timely and equitable manner.
The Meeting agreed with the decision taken at the 172nd Meeting of the OPEC Conference to extend the important work of the JMMC and JTC for the period of the extension of the Declaration of Cooperation.
The Meeting expressed specific thanks to HE Issam A. Almarzooq of Kuwait, Chair of the JMMC, and HE Alexander Novak of the Russian Federation, who served as co-chair. The two Ministers will continue to serve in their respective roles following the decision to extend the mandate of the JMMC, as well as the JTC.
OPEC and the participating non-OPEC countries agreed to continue to regularly review the status of their cooperation at the technical and ministerial levels, and further agreed to continue to strengthen their cooperation, including facilitating the exchange of joint analyses and outlooks, with a view to ensuring a sustainable oil market for the benefit of producers, consumers, the industry and the global economy.
Finally, the Ministerial Meeting expressed its gratitude to the Government and to the people of the Republic of Austria, as well as the authorities of the City of Vienna, for their hospitality and excellent arrangements made for the Meeting.
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GAZPROM - The parties discussed relevant issues related to bilateral cooperation, including the Baltic LNG project. Emphasis was placed on the priority measures aimed at developing a joint design concept (pre-FEED).
BHGE - U.S. Rig Count is up 11 rigs from last week to 1,063, with oil rigs up 8 to 869, gas rigs up 4 to 193, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 13 rigs from last week to 195, with oil rigs up 8 to 127 and gas rigs up 5 to 68.
REUTERS - Brent crude futures had risen $1.02 cents, or 1.3 percent, to $81.28 a barrel by 0637 GMT. The contract dropped 3.4 percent on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown. U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session. WTI is on track for a 3.5 percent drop this week.
EIA - Brent crude oil spot prices averaged $79 per barrel (b) in September, up $6/b from August. EIA expects Brent spot prices will average $74/b in 2018 and $75/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.