TheCable

Mohammed Barkindo, secretary-general of the Organisation of Petroleum Exporting Countries (OPEC), says over 90 percent of member states are conforming to the oil deal reached in 2016.

Speaking at the 2017 International Petroleum (IP) Week in London, Barkindo said the deal has been a success for the entire global economy.

“In OPEC’s most recent monthly oil market report the production data for January shows conformity from participating OPEC nations above 90 per cent,” Barkindo  said.

“Moreover, all countries involved remain resolute in the determination to achieve a higher level of conformity. We are also determined to realize the joint conference decision to strengthen and sustain this cooperation between OPEC and non-OPEC.

“We want this to be a lasting and flexible partnership that when necessary can help reduce volatility, provide more confidence to the market, and steer a path towards more sustainable stability.

“In the short-term it is expected that this cooperation between OPEC and non-OPEC, alongside recent indications of some improving macroeconomic conditions, will see the rebalancing process brought forward and more stability return to the market.  I cannot over stress how vital this is, not only to the industry, but the global economy too.”

Barkindo went on to say OPEC remains “optimistic about a sustainable future for oil.  We believe it will continue to play a central role in helping provide heat, light and mobility to billions of people across the world, and we believe it will continue to help drive the economies and the diversification of our Member Countries”.

“The focus needs to be on sustainable oil market stability.  It is the concern that links us all. Stability is vital for security of supply and security of demand, which are in turn both vital to stable investments and future capacity expansion.  This is beneficial to both producers and consumers.

“To put it simply: oil market stability is one of the central pillars of a well-functioning global economy.”