The landmark ‘Declaration of Cooperation’ reached on 10th December 2016 by OPEC’s 14 Member Countries and the
ten non-OPEC oil Producing nations underlined the shared resolve they all had in achieving an accelerated realignment of global oil supply and demand at a time of critical importance, an OPEC publication opined.
OPEC and non-OPEC producers agreed on 30 November to extend oil output cuts until the end of 2018.
''The ‘Declaration of Cooperation’ not only because it is historic in itself but also because it is a noteworthy achievement on so many other levels: It is the first production adjustment since Oran 2008. It is the first time that participating non-OPEC countries are committed to a joint agreement for production adjustment. It allows for Iraq to be effectively part of the production management for the first time since 1998, '' the Vienna-based organization said in Special Edition of the OPEC Bulletin to celebrate and honour the deal.
''With the ‘Declaration of Cooperation’, the 24 producers upheld their responsibility for oil market stability in the interest of all oil producing and consuming countries. Their monumentally significant decision, taken after extensive rounds of consultations in order to address the prevailing market realities at the time, were considered to be much more than just a short-term ‘fix’; they were seen as essential in the medium- and long-term as well. As a result, the Declaration demonstrated and even exemplified a commitment to the global community in shared efforts to restore and sustain market stability with positive and broad implications for the world economy, the oil industry and oil producing countries,'' the publication said.
Despite sources of uncertainty and the different kinds of challenges they represented, the bulletin noted, the 24 signatories of the Declaration found ways to see beyond parochial concerns and view the problem together, collectively, with the aim of finding a way forward that might benefit all of them as well as the world as a whole.
''They managed to rise to the occasion, amid extensive consultations and multiple rounds of shuttle diplomacy, and produced an extraordinary action that has changed the course of history.
While we are still looking forward to the continuing implementation of the market rebalancing long sought by so many, the progress made in the year has been remarkable.
''Furthermore, the relationships built and the ties made have been exemplary and they are now serving as a model of how to tackle other problems in the future,'' the bulletin concluded.