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06 Dec 2019

OPEC 177th Meeting concludes

The 177th Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) was held in Vienna, Austria, on Thursday, 5 December 2019, under the Chairmanship of its President, HE Manuel Salvador Quevedo Fernandez, People's Minister of Petroleum of the Bolivarian Republic of Venezuela and Head of its Delegation. 

The Conference expressed its sadness on the news of the passing of Dr. Fadhil J. Chalabi. Dr. Chalabi served as Deputy Secretary General of the Organization from 1978-89 and also as Acting Secretary General from 1983-88. The OPEC Conference expressed its deepest and heartfelt condolences to the family of Dr. Chalabi.

The Conference welcomed new ministers: HE Timipre Sylva, Minister of State for Petroleum Resources of the Federal Republic of Nigeria; and HRH Prince Abdul Aziz Bin Salman, Minister of Energy of the Kingdom of Saudi Arabia.

The Conference thanked their predecessors in office: HE Dr Emmanuel Ibe Kachikwu of Nigeria; and HE Khalid Al-Falih of the Kingdom of Saudi Arabia.

The Conference reviewed the Secretary General’s report, the report and recommendations of the Joint Ministerial Monitoring Committee (JMMC), whose work continues to be supported by the Joint Technical Committee (JTC) and the OPEC Secretariat, the report of the Economic Commission Board, as well as various administrative matters.

The Conference took note of oil market developments since it last met in Vienna on 1 July 2019 and reviewed the oil market outlook for 2020. The forecast for global economic growth in 2020 remains at 3%, oil demand is expected to grow by 1.1 mb/d, and in recent months expectations for non-OPEC supply have been revised downwards. The Conference noted that a number of critical uncertainties need to be monitored, including trade-related negotiations, macroeconomic developments and other factors.

The Conference observed the potential consequences of these developments on global inventory levels, as well as overall market and industry sentiment.

Accordingly, the Conference decided to support an additional adjustment of 500 tb/d to the adjustment levels as agreed at the 175th Meeting of the OPEC Conference and 5th OPEC and non-OPEC Ministerial Meeting, subject to approval by the 7th OPEC and non-OPEC Ministerial Meeting to be held on 6 December 2019. This additional adjustment would be effective as of 1 January 2020 and is subject to full conformity by every country participating in the DoC.

Member Countries reaffirmed their continued focus on fundamentals for a stable and balanced oil market, in the interests of producers, consumers, and the global economy. The Conference emphasized the ongoing inclusive coordination with consuming countries, and the consultations undertaken before reaching decisions. Member Countries are resolute and committed to being dependable and reliable suppliers of crude and products to global markets.

The Conference commended all OPEC Member Countries, as well as non-OPEC countries participating in the ‘Declaration of Cooperation’ (DoC), for their continued commitment to achieving and sustaining balance and stability in the market.

The Conference also acknowledged the essential role played by participating non-OPEC countries in the DoC.

The Conference deliberated on the current status of negotiations at the COP-25 United Nations Framework Climate Change Conference in Madrid and underscored that all OPEC Member Countries are actively engaged and supportive of the Paris Agreement. It stressed that climate change, environmental protection and sustainable development are major concerns for us all.

The Conference elected HE Mohamed Arkab, Minister of Energy of Algeria as President of the Conference for one year, with effect from 1 January 2020, and HE Dr. Diamantino Pedro Azevedo, Angola’s Minister of Mineral Resources and Petroleum as Alternate President, for the same period.

The Conference paid a glowing tribute to the outgoing President of the Conference, Venezuela’s People’s Minister of Petroleum, HE Manuel Salvador Quevedo Fernandez, for his exemplary leadership in 2019.

The Conference appointed Mr. Etienne Lepoukou, Gabon’s Governor for OPEC, as Chairman of the Board of Governors for the year 2020, and Mr. Hossein Kazempour Ardebili, IR Iran’s Governor for OPEC, as Alternate Chairman for the same period.

The 18th Meeting of JMMC will be held during the first week of March 2020 in Vienna, Austria, followed by an Extraordinary Meeting of the OPEC Conference on 5 March 2020

The Conference resolved that its next Ordinary Meeting will convene in Vienna, Austria, on 9 June 2020 and noted that September 2020 will mark the 60 Year Anniversary since the founding of OPEC in Baghdad in 1960.

The Conference expressed its continued gratitude to the Government and to the people of the Republic of Austria, as well as the authorities of the City of Vienna, for their warm hospitality and excellent arrangements for the Meeting.