VIENNA, April 10 (KUNA) -- The 9th (Extraordinary) OPEC and non-OPEC Ministerial Meeting agreed late Thursday agreed to downsize oil production by 10 million barrel per day (bpd) as a measure to combat recent development brought by the coronavirus (COVID-19).
The meeting's final statement said the OPEC and non-OPEC oil producing countries agreed on adjusting downwards their overall crude oil production by 10.0 bpd, starting on May 1, 2020, for an initial period of two months that concludes on June 30, 2020.
For the subsequent period of 6 months, from July 1, 2020 to December 31, 2020, the total adjustment agreed will be eight mln bpd.
It will be followed by a six mln bpd adjustment for a period of 16 months, from January 1, 2021 to April 30, 2022.
The baseline for the calculation of the adjustments is the oil production of October 2018, except for the Kingdom of Saudi Arabia and The Russian Federation, both with the same baseline level of 11.0 bpd.
The agreement will be valid until April 30, 2022, however, the extension of this agreement will be reviewed during December 2021.
It called all major producers to contribute to the efforts aimed at stabilizing market.
The statement indicated that the conferees reaffirmed and extended the mandate of the Joint Ministerial Monitoring Committee (JMMC) and its membership, to closely review general market conditions, oil production levels and the level of conformity with the Declaration of Cooperation and this Statement, assisted by the Joint Technical Committee (JTC ) and the OPEC Secretariat.
The Declaration of Cooperation conformity is to be monitored considering crude oil production, based on the information from secondary sources, according to the methodology applied for OPEC Member Countries.
There will be a meeting on June 10, 2020 via webinar, to determine further actions, as needed to balance the market.
All the OPEC and non-OPEC oil-producing countries agreed on participating in the Declaration of Cooperation, with the exception of Mexico, and as a result, the agreement is conditional on the consent of Mexico. (end)