November 30, 2017, AUSTRIA, OPEC and non-OPEC nations agreed in 2016 to coordinate production, and the 173rd Ordinary OPEC meeting in Vienna will want to see evidence of oil market stability – the aim of a deal the producers describe as historic.
On Dec 10, 2016, 24 leading global oil producers signed a Declaration of Cooperation in Vienna that committed the countries “to a sizeable adjustment in crude oil production in support of much-needed market stability,” according to the press statement at the conclusion of the meeting. It added that the historic move between the 13 OPEC Member Countries and 11 non-OPEC producers was the culmination of many months of intense discussion and negotiation, often involving the highest level of heads of state and government. They seek to accelerate the rebalancing of the global oil market through an adjustment in combined production of 1.8 million barrels per day.
The resulting declaration, which came into effect on Jan 1, 2017, is for six months. It is extendable, depending the status of supply and demand, as well as global inventories.
The production adjustments are voluntary, and the success of the agreement will rely in large part on compliance.
Over the last two and a half years, the oil industry has experienced its deepest downturn since at least the 1990s, according to the New York Times.
JMMC expresses confidence that the oil market is steadily progressing towards rebalancing (OPEC Jul 2017)
Turning a page in oil’s history (OPEC Jan-Feb 2017)
Recent oil price stories (Economist)
Oil Prices: What to Make of the Volatility (NYT Jun 2017)