The 13 members Organization of Petroleum Exporting Countries (OPEC) and 10 allies agreed to adjust production by 500,000 barrels per day (bpd) starting January after 10 days of tense discussions - Photo by OPEC Secretariat Office

JAKARTA (TheInsiderStories) – The 13 members Organization of Petroleum Exporting Countries (OPEC) and 10 allies agreed to adjust production by 500,000 barrels per day (bpd) starting January after 10 days of tense discussions. This will bring the total production cuts at the start of 2021 to 7.2 million barrels per day.

“Beginning in January 2021, DoC (Declaration of Cooperation) participating countries decided to voluntary adjust production by 0.5 million bpd from 7.7 million bpd to 7.2 million bpd,” wrote the statement released on Dec. 3.

Another positive thing for the cartel was Iran’ agreed to go with any deal struck by the group. The meeting itself, reaffirmed the organization commitment to stabilizes the market and a fair return on invested capital. The meeting also recalled the decision taken by all participating countries in the DoC at the 10th (extraordinary) meeting on April 12, 2020.

The DoC participating counties also agreed to hold monthly OPEC and non-OPEC ministerial meetings starting January 2021 to assess market conditions and decide on further production adjustments for the following month. OPEC+ participating countries urged Saudi Arabia’ minister of energy, Prince Abdul Aziz bin Salman to continue in his role as Chair of the organization and he was accepted the job.

“His perseverance, diligence and extraordinary efforts have been highly appreciated by all participating countries and instrumental in helping counter the impacts of the COVID-19 pandemic and in stabilizing the oil market through the successful implementation of DoC objectives,” adds by the statement.

Looking ahead, the committee emphasized that it was vital that DoC participants, and all major producers, remain fully committed to efforts aimed at balancing and stabilizing the market. It noted that renewed lockdowns, due to more stringent the virus containment measures, continue to impact the global economy and oil demand recovery, with prevailing uncertainties over the winter months.

On Thursday, West Texas Intermediate crude oil price settled 0.6 percent to US$45.64 per barrel, after posting a 27 percent gain during November on investor bets that the world might soon be free of the virus. While,  London’ Brent crude oil, finished Thursday’ trade at $48.71, or almost 1 percent gained, after last month rose 28 percent.

Written by Editorial Staff, Email: theinsiderstories@gmail.com