OPEC and Non-OPEC Bond – Market Not Convinced


Crunch point for OPEC, with decisions to be made. Many would have written the organisation off, but the bond with
Russia has strengthened and so, too, has the credibility of OPEC.

At the Press Conference on Friday, following the Meeting, HE Suhail Mohamed Al Mazrouei, Minister of Energy & Industry of the United Arab Emirates and Head of its Delegation, announced that the Conference had agreed that, as compliance towards the cut in OPEC output of 1.2mbpd, agreed with effect from December 2016, had been exceeded by 50%, that OPEC would correct the imbalance and reduce compliance from 150% to 100%.

Now, the overall cut, including non-OPEC, was actually 1.8mbpd, but there was some uncertainty that the over- compliance covered the full 1.8mbpd and not just the 1.2m. So, taking the position in May, we understood that OPEC would put back around 900,000bpd into the market.

John Hall

John joined Alfa Energy in 2013 as Chairman, where his specific interest is the development of the company’s profile in the areas in which it primarily operates - across the EU and the US. He is Fellow of the Energy Institute, a Member of the Parliamentary Group for Energy Studies, an Associate Member of the Chartered Institute of Purchasing and Supply, and a Member of the Market Research Society. He began his long career in the industry when he set up John Hall Associates in 1973, a company which merged with Energy Quote in 2009 and currently trades as Energy Quote JHA.