(MENAFN- Kuwait News Agency (KUNA)) VIENNA, Dec 1 (KUNA) -- The Joint Ministerial Monitoring Committee (JMMC) of the deal between OPEC and non-OPEC producers to cut oil output, has contributed a lot to the success of the historic agreement, a senior OPEC official said on Friday.
President of the OPEC Conference, Saudi Minister of Energy, Industry and Mineral Resources Khalid A. Al-Falih told KUNA that there is a need for positive and serious signals to maintain balance of the world's oil market.
Kuwait is the chair of the JMMC.
Al-Falih's statement came as the Third OPEC and non-OPEC Ministerial Meeting concluded discussions in Vienna on Thursday.
Yesterday, OPEC and non-OPEC producers decided to extend their previous agreement on reducing their production, by about 1.8 million barrels daily, until the end of 2018.
The decision to extend the output cut to the end of next year will help realize the aspired balance of the market basic factors of supply and demand, the Saudi minister said.
Al-Fali considered the agreement between the two sides in the interest of producers and consumers, besides creating a favorable atmosphere for investing in the oil sector to respond to requirements of the coming period, and the rise in demand.
Yesterday's move will also help cut the glut on the oil market, restoring it to normal position, namely the rate during the past five years, he stated.
"By all standards, we have managed to enforce the Vienna agreement. This is obviously demonstrated through keenness of the 24 countries (13 OPEC and 11 non-OPEC) to curb production rates, strictly complying with the deal," he said.
Though the present stage sees some decline in demand, with spike of US shale oil supplies, the market is still cohesive, Al-Falih said. He referred to optimism by oil market experts on future prospects.
Based on success to limit production in 2017, the President of the OPEC Conference expects gradual recovery of the market and stability of prices by the end of 2018.
On November 30, 2016, OPEC members decided a production adjustment of 1.2 million barrels a day (mb/d) for six months, effective from 1st January 2017.
On December 10, 2016, ten non-OPEC producing countries stated their desire to achieve oil market stability in the interest of all producers and consumers, and proposed to voluntarily adjust their oil production by 558,000 barrels a day (tb/d), as of January 1, 2017 for six months.
On May 25, 2017, the partners amended the Declaration of Cooperation to extend for a further nine months as of July 1, 2017. (end) amg.msa
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