Vienna, 6 January 2022 (TDI): Russian Deputy Prime Minister, Alexander Novak, co-chaired the 24th OPEC and non-OPEC Ministerial Meeting. Novak was co-chair along with Abdul Aziz bin Salman, Saudi Arabian Minister of Energy. The meeting was via video conference, on 4 January.
The purpose of the meeting was to validate the earlier decision of the daily production of four hundred thousand barrels of oil. This included other agendas to balance regular oil market estimates for 2022.
In the last few months, oil prices have risen sharply due to the omicron variant. This variant has already disturbed the global supply and shipping chains. At this hour, the United States and Russia have remained hesitant to release an extra supply of oil at the international market.
OBJECTIVE OF THE 24TH OPEC MINISTERIAL MEETING
Regarding this situation, the 24th OPEC ministerial meeting took place to ensure the daily supply of oil and emphasized the critical importance of the compensation mechanism which would be liable till the end of June 2022.
The members of the OPEC and non-OPEC agreed before to increase their production to 400,000 barrels per month in January. That plan was to stabilize the rising oil prices, caused by low supply and the global supply remains low.
The compensation plan is mainly adjusted because many member states are striving to meet the agenda target; that is due to political unrest and infrastructural issues. Besides, this compensation plan will be made according to the agenda of the 15th ONOMM (OPEC and non-OPEC Ministerial Meeting).
The meeting also reaffirmed the monthly adjustment plan approved at 19th ONOMM. 24TH ONOMM tried to deal with the problem of oil shortage and high prices with short-term solutions.
In the long run, the global community may witness high oil prices which may lead the international community towards green energy and carbon-neutral companies. The 25th ONOMM will take place in February 2022.
According to Novak, Russia reaffirmed their commitment to the OPEC+ deal and have regularly made statements to this effect. The condition is that every country must conform to the agreed production levels.
Novak then stated that if need be, it’s possible to adjust compensation plans, among other things. Moreover, according to Novak, those adjustments are for those who have not been able to meet their commitments in full.
