OPEC’s DoC Conformity Soars, Hits 159% In July
The compliance of participating countries to the Organisation of the Petroleum Exporting Countries, OPEC’s Declaration of Cooperation (DoC) witnessed a record high of 159 per cent in the month of July 2019.
This was disclosed by the Joint Ministerial Monitoring Committee (JMMC) when it reviewed the monthly report prepared by its Joint Technical Committee (JTC) and recent developments in the global oil market, as well as near-term prospects in 2019 and 2020.
According to the JMMC, the overall conformity of 159% recorded in July 2019 was 22 pp higher than in June 2019, adding that the average conformity of 134% since January 2019 was the highest to date in 2019. “This high level of overall conformity has offset uncertainty in the market due to ongoing economic growth worries”.
The JMMC underscored the growing importance of the DoC in supporting oil market stability, noted that the ongoing healthy oil demand so far has arrested global oil inventories growth, while being optimistic that it will lead to significant draws in the second half of the year.
The JMMC also noted that, going forward, the forecast for oil market fundamentals by major forecasters remain robust in 2019 and 2020.
The JMMC urged all participating countries in OPEC’s Declaration of Cooperation to continue their strive in achieving full and timely conformity with voluntary production adjustments based on the decisions of the 176th Meeting of the OPEC Conference, 1 July 2019, and the 6th OPEC and non-OPEC Ministerial Meeting, 2 July 2019.