Nigeria and other member and non-member nations of the Organisation of Petroleum Exporting Countries reduced global crude oil supply by 1.9 billion barrels between May and November last year, OPEC stated on Tuesday.
The organisation stated that the meeting reaffirmed the continued commitment of the participating countries in the Declaration of Cooperation to a stable market in the mutual interest of producing nations.
Participants also agreed on an efficient, economic and secure supply to consumers, as well as a fair return on invested capital.
On the reduction of crude supply globally, OPEC said, “Between May and November, participating OPEC and non-OPEC countries contributed to reducing the global supply by approximately 1.9 billion barrels, including voluntary adjustments, and this has been key to the rebalancing of the market.”
The meeting recalled the decision taken by all DoC participating countries at the 10th (Extraordinary) ONOMM to adjust downwards overall crude oil production, the unanimous decisions taken at the 11th ONOMM, and the outcomes of the 12th ONOMM.
It commended the DoC participating countries for undertaking the largest and longest crude oil production adjustments in history in response to the exceptional challenges and market conditions caused by the COVID-19 pandemic.
It pointed out that rising infections, the return of stricter lockdown measures and growing uncertainties had resulted in a more fragile economic recovery that was expected to carry over into 2021.
The meeting recognised that market sentiment had been buoyed recently by vaccine programmes and improved asset markets.
It, however, underscored the need for caution due to prevailing weak demand and poor refining margins, the high stock overhang and other underlying uncertainties.
The meeting acknowledged the need to gradually return 2mb/d to the market, with the pace being determined according to market conditions.
It reconfirmed the decision made at the 12th ONOMM to increase production by 0.5mb/d starting in January 2021, and adjusting production from 7.7mb/d to 7.2mb/d.
It said the adjustments to the production level for February and March 2021 would be implemented as per the distribution details made available to participating nations.