The Joint Technical Committee convenes for its 45th meeting
The 45th Meeting of the Joint Technical Committee (JTC) was held via videoconference, in preparation for the 23rd Meeting of the Joint Ministerial Meeting (JMMC) planned for 19 October 2020.
The JTC is a technical body of the JMMC and both committees were established under the umbrella of the historic ‘Declaration of Cooperation’ (DoC) signed on 10 December 2016. The committees are mandated to review global oil market conditions and prospects, and monitor the conformity levels to the voluntary production adjustments adopted by the OPEC and non-OPEC Ministerial Meeting.
OPEC Secretary General, Mohammad Sanusi Barkindo, opened the meeting by paying respects to the late Emir of Kuwait, HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, who passed away on 29 September 2020, reflecting on his years of courageous leadership.
The Secretary General highlighted that the late Emir played a key role in breaking the impasse in 2016 that paved the way to birth of the ‘Declaration of Cooperation’ (DoC) on 10 December 2016.
“His passionate dedication to oil market stability and skilled diplomacy were central to the formation of the DoC and its success in the years since,” Barkindo added.
On oil market developments, the Secretary General said: “For more than six months now, we have worked shoulder-to-shoulder to confront a market crisis that is without historic precedent,” adding, “The dark clouds of this pandemic continue to hang over us. In some countries, a second wave is already here, compounding both the human tragedy and economic uncertainty.”
The Secretary General noted that OPEC’s Monthly Oil Market Report forecasts that global GDP will fall by around 4 per cent this year and then bounce back in 2021 at a rate of around 4.6 per cent.
He added: “Our forecast for 2020 oil demand remains at slightly more than 90 mb/d, a 10 per cent decline for the year.”
In reviewing the longer-term prospects for the oil market, Barkindo stated that the recently-launched World Oil Outlook sees global primary energy demand picking up and continuing to grow, increasing by a significant 25 per cent over the next 25 years. He noted that oil is expected to retain the largest share of the energy mix, accounting for nearly 28 per cent in 2045.
The Secretary General concluded by noting that the worst of the current crisis may be over, adding, “History has taught us that there is no end to the need for dialogue and cooperation to achieve a more sustainable and resilient energy system for the benefit of all.”