76120
Barkindo Says Oil Cuts Only Option to Stabilize Market
Barkindo Says Oil Cuts Only Option to Stabilize Market

Barkindo Says Oil Cuts Only Option to Stabilize Market

Barkindo Says Oil Cuts Only Option to Stabilize Market

The oil market is rebalancing at a quickening pace and production cuts are the “only viable option” to restore stability, OPEC Secretary-General Mohammad Barkindo said.
“We are seeing clear indications that the market is rebalancing at an accelerating pace and stability is steadily returning,” Barkindo said in a conference in Abu Dhabi, the UAE, on Monday, Bloomberg reported.
“I am certain that if we had not mobilized ourselves when we did, building consensus and jointly taking action in responding to the crisis, the industry would be in worse condition than it is today.”
He added that global production curbs are the “only viable option” to restore stability to the oil market.
Barkindo also said that in its monthly market report on Monday, OPEC will raise its estimate of oil demand growth to “above 1.5 million barrels a day” for both 2017 and next year. Stockpiles have declined by more than 180 million barrels this year alone, he said.
"The Organization of Petroleum Exporting Countries should decide at its meeting later this month whether or not to extend the cuts," UAE Energy Minister Suhail Al Mazrouei told the same conference in Abu Dhabi.
This is while top producers such as Russia and Saudi Arabia had earlier announced their intention to renew the deal on cuts.
"Neighboring Oman backs prolonging the output limits beyond March and sees producers extending them until the end of 2018," Omani Oil Minister Mohammed Hamad Al Rumhy told reporters.
Output cuts by OPEC and other producers such as Russia and Oman have started to pay off, with Brent crude prices trading close to a two-year high. OPEC will meet in Vienna on Nov. 30 to review the pact, which took effect in January, and possibly extend it.
Iraq has also signaled its willingness to extending the curbs.
Mazrouei affirmed that view, saying that coordinated cuts by OPEC and suppliers outside the group have helped trim crude inventories from record storage levels.
"The UAE, OPEC’s fourth-largest producer, sees no need for the organization to hold an extraordinary meeting in the first quarter of next year," he added.
“I am optimistic about the whole of 2018,” which will be a recovery year for oil markets, he said in a speech at the Abu Dhabi conference.
US shale output, a contributor to the global glut, has responded more slowly than expected to the recent increase in crude prices.

 

Short URL : https://goo.gl/gkWBRC
  1. https://goo.gl/YuG5wG
  • https://goo.gl/oHhPgB
  • https://goo.gl/6R3Fdt
  • https://goo.gl/2SWafh
  • https://goo.gl/RYY1vc

You can also read ...

Essar’s Oct. Iran Oil Imports Fall
Indian private refiner Essar Oil’s imports from Iran fell by...
S. Arabia’s Falih: 50% of Excess Oil Remain
The world will still have a surplus of oil by the end of March...
IEA: US to See Most Crude Output Growth in 10 Years
The United States is expected to account for more than 80% of...
Tehran and Dushanbe have discussed the idea of using tracts of land in Tajikistan for cultivating crops to be imported back to Iran.
In his first overseas trip as Iran's energy minister, Reza...
Oil Prices Set for Weekly Fall
Oil prices rose on Friday but remained en route for their...
Just two offshore companies accounted for 45% of the total owed creditors this year.
Offshore oil drilling and services companies, hurt by the...
NIOC has concluded MoUs with Austria’s OMV and Thailand’s PTTEP for undertaking surveys on the oilfield.
Singapore-based Berlanga Group has signed a memorandum of...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus