02 December 2017, Sweetcrude, Lagos – Secretary-General of Organisation of the Petroleum Exporting Countries, OPEC, Mohammed Barkindo, has reveled in the group’s achievement alongside its non-OPEC partners at rebalancing the oil market and boosting oil prices.
Barkindo, while speaking at the 3rd OPEC and non-OPEC Ministerial meeting in Vienna, Austria, said there is now global recognition that without the group’s efforts, the glut in the market would have persisted, leading to continuous fall in prices.
Oil prices increase above $60 per barrel after OPEC and its non-OPEC partners, led by Russia, agreed to cut 1.8 million barrels per day output from January through March next year, a deal that has been extended for the third time till December next year.
“I would also like to stress that the coming together of OPEC and non-OPEC producers has made the extraordinary difference that has intensified the impact of our collective efforts and produced the improvements we’ve seen”, he said.
Looking ahead, Barkindo said economic performance is improving in most of the world’s leading countries.
The International Monetary Funds, IMF’s recent forecast had said global growth in 2018 is at 3.7 percent, while the European Commission also stated that the European Union, EU’s economies this year is on track to grow at its “fastest pace in a decade”.
According to the OPEC chief, oil demand growth on the other hand, is on firm ground, and direction of the market over the past several months, shows “a distinct improvement in both fundamentals and the overall market sentiment”.
This “gratifying outcome”, he said, had resulted primarily to 100 percent, or more, compliance to the production targets by OPEC and non-OPEC producers.
“Such positive developments to date show that we’re heading in the right direction”.
However, Barkindo said the general aim is still not totally achieved in terms of inventories reaching their target levels.
“We must remain resolutely focused on this task”, he said.