VIENNA, Jan 21, (KUNA): OPEC’s committee tasked with implementing the recent accord on slashing oil output will hold on Sunday the first session nearly two weeks after the agreement went into effect to trim the production by 1.8 million barrels per day.
The meeting of the commission, chaired by Kuwait’s Oil Minister Essam Al-Marzouq, is of particular significance due to its sensitive mission to oversee the output of the crude oil by OPEC and non-OPEC oil producing nations.
OPEC’s insiders told KUNA that the Secretariat General of the Organization of Petroleum Exporting Countries (OPEC) had already begun preparations for hosting the commission session, expressing high hopes that the 24 oil producers would abide by the Vienna accord to the letter.
The producers had worked out the key accord with aim of tackling the market glut in a bid to shore up oil prices.
The well-informed sources told the Kuwaiti news agency that the relevant states’ determination on slashing the output quotas “has started to bear fruits for the crude prices have relatively moved up in the international markets.” The latest OPEC monthly report showed that crudes’ prices of the organization’s 12 member countries jumped 20 percent in December reaching $51.65 pb, due to the historic cooperation between the producers from inside and outside OPEC, for the first time since 18 months ago.
As to Kuwait’s chairing of the ministerial panel charged with monitoring the accord implementation, the sources said Kuwait was named the committee head at the latest ministerial meeting, noting the deep respect among the producers for the country which has for long years honored its commitments toward the market stability and interests of producers and consumers.
On eve of the official ministerial meeting, the OPEC states’ ministers will hold a preparatory and coordination meeting.
The Kuwait-chaired commission includes as members Venezuela and Algeria (OPEC members) and Russia and Oman (non-members).
OPEC producers reached an agreement in Vienna, in end of November, to cut the output ceiling by 1.2 million barrels per day, effective start of the New Year. The organization had also received pledges from producing countries outside the organization to cut their output by 458,000 bpd.
OPEC’s production ceiling will be, according to the agreement, at the level of 32.5 million bpd.
Many analysts concur that the consensus has succeeded in slashing the production and keeping the prices at reasonable levels. However, its sustainability hinges largely on continuous commitment by the producers to abide by the set quotas.
OPEC had also hosted, on December 10th, a coordination ministerial meeting grouping OPEC and non-OPEC member countries, including Russia — the first of its kind to be convened since 2002.