Lagos — The Secretary-General of the Organization of Petroleum Exporting Countries, OPEC, Mohammad Barkindo has attributed the stability in the global crude oil market and the recent rebound in the price of crude oil to the OPEC+ led cuts.
Speaking through a videoconferencing to the 133rd Meeting of the Economic Commission Board, he said the industry was not out of the woods yet, adding that the recovery in global trade will be central to the revival of the oil market.
“I am confident that this Organisation will emerge from the current challenging and unprecedented times more united, stronger, and more forward-looking. We are not out of the woods yet.
“But the historic OPEC+-led response to the current crisis is already helping to reduce volatility, stabilize the oil market, and to provide a platform for recovery and growth in the coming months and years,” he said.
OPEC+ had agreed to cut production by a combined 9.7 million barrels per day starting from May. The group meets again this month to deliberate over further action.
Barkindo emphasised the need for timely and accurate data to help its various committees.
He stated that strategic decisions to further stabilise the crude oil market could only be reached when underpinned by up-to-date and in-depth analysis.
“It is clear that the post-pandemic world will be much different and require thorough and forward-looking reflections.
”It will take time for a new equilibrium to emerge, not only in terms of a balanced market, but among producing countries as well.
“No individual stakeholder can have all the answers. It is only by reaching out and deepening the dialogue between reputable institutions that we can provide a better and broader sense of the rapidly evolving energy landscape.
“We continue to work closely with the International Energy Agency – including regular consultations – and International Energy Forum to ensure open lines of communication between producers and consumers.
” Together, we collaborate to ensure access to accurate, timely and transparent data about the markets”, he said.
He noted that the challenges created by the COVID-19 tragedy would require special attention to ensure that the OPEC Conference had access to quality and timely data, market information, and fact-based assessments on current and projected conditions.
He further said that it was essential that the Joint Ministerial Monitoring Committee of the Declaration of Cooperation (DoC) was equipped with the latest and best information so it can make apt and timely recommendations under rapidly changing circumstances.
“Indeed, the link between transparent data and better predictability, and secure and sustainable energy supply, will grow in importance in the months and years to come,” he said
Barkindo also stated that OPEC was constantly working hard to improve its research and deepen its analysis to provide the best possible input to its various boards which are major sources of key decisions reached by its ministerial conference.
He, however, noted that the rebalancing process may be longer than anticipated under the prevailing uncertainties and downside risks, especially given that global inventories appear to be continuing to build, albeit at a much lower rate than the record pace of late March and April.