OPEC and non-OPEC oil producers will aim to formalize their long-term cooperation later this year by approving a charter that will make possible further joint action on output, according to a draft charter seen by Reuters.
Russia and several other non-OPEC countries have joined OPEC producers in reducing oil output since 2017 in a move that has helped raise oil prices to $80 (61.48 pounds) per barrel from less than $30.
Moscow and Riyadh have said they want to maintain a close level of cooperation even after the oil market stabilizes and the current output reduction deal expires.
The draft charter, to be discussed by OPEC and non-OPEC minister later this year, said its fundamental objective is to coordinate policies aimed at stabilizing oil markets in the interest of producers, consumers, investors and the global economy.
The charter also aims to promote better understanding of oil market fundamentals among participants as well as to promote oil and gas in the global energy mix for the long term.
It said ministers of participating countries shall meet once a year while experts should meet twice a year. The ministers shall propose actions including possible summits by heads of state, Reuters said.
The charter’s secretariat will be hosted by the OPEC secretariat in Vienna but will be independent.
OPEC and its partners delivered 109 percent of pledged oil supply curbs in July, OPEC said in a statement on Thursday, confirming figures reported on Monday by Reuters.
The OPEC and non-OPEC JMMC committe expressed its satisfaction with recent oil market fundamentals showing a good balance between supply and demand, considering seasonal factors, the statement said.
The next meeting of the JMMC on Sept. 23 in Algeria will review the plan for monitoring market fundamentals and conformity for the rest of 2018, as well as the framework of cooperation to be established in 2019 and beyond.
