By Anna Zvagulis
A very productive OPEC committee meeting yesterday resulted in two resolutions. The first was regarding oil production and export Quotas, and the second Quotas and Meetings.
The main submitter of the resolution was United Arab Emirates, with 10 sponsors.
Deciding that there was little respect for individual Quotas by member states and “deeply concerned by the economic damage made to member states by low and high oil prices,” the resolution was created. It was passed on October 19, 2014.
The resolution called for more “frequent and emergency meetings,” agreeing to have annual meetings to discuss “long-term strategies OPEC countries should implement.”
Point four in the resolution states,
1. The Quotas of OPEC will be reduced as follows:
a) A 2% initial decrease in oil production as compared to 2013
i. Every Member State will reduce their Quota production proportionally
b) The Republic of Iraq is exempt from Res. No. 2 Point 4i for the duration of 1 year with the possibility of extension as needed
c) A further 1% decrease in oil production annually will be implemented until decided differently
This quota could put some pressure on the global commmunity, who is still largely dependent on fossil oil.