A rebalancing of oil market is progressing more slowly than expected, but it will speed up in the second half of the year, OPEC Secretary-General Mohammad Barkindo said on Sunday.
“We are pretty sure that the rebalancing process may be going at a slower pace than earlier projected, but it is on course. It is bound to accelerate in the second half,” Barkindo told reporters in the Russian city of St Petersburg, Reuters reported.
Barkindo cited strong oil demand growth, conformity with a global pact by OPEC and non-OPEC countries to cut output as well as an inventory draw in the United States as reasons why a rebalancing of the oil market would speed up. Ministers from the Organization of Petroleum Exporting Countries and other non-OPEC producers will meet in St Petersburg on Monday to discuss the pact on cuts, which was reached earlier this year.
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