OPEC Secretary General Mohammad Sanusi Barkindo on Dezember 5, 2016, said that OPECs’ decision to cut production and comply with the committed output levels is not contingent upon the outcome of the meeting with non-OPEC countries scheduled to take place on December 10.
OPEC will meet non-OPEC countries to finalize global limiting pact in Vienna. They added 14 countries are set to participate in the meeting including; Mexico, Oman, Kazakhstan, Bahrain, Colombia, Congo, Egypt, Russia, Trinidad &Tobago, Turkmenistan, Azerbaijan, Bolivia, Brunei and Uzbekistan.
«We are confident that the outcome of the meeting with non-OPEC countries will be positive as a lot of inter-ministerial consultations have already taken place,» Barkindo said.
OPEC agreed this week to reduce output by around 1.2 million barrels per day (bpd) beginning in January in a bid to reduce global oversupply and prop up prices.
OPEC hopes non-OPEC countries will contribute another 600,000 bpd to the cut, Russia has said it will reduce output by around 300,000 bpd.
While talking on the sidelines Barkindo also stated that a special Joint Ministerial committee will be set-up, consisting of 3 OPEC countries and 2 non-OPEC countries which will monitor the production levels of countries which have agreed to cut output. He added that OPEC will hold a review meeting six months after January, 2017 to take stock of the situation.
The Secretary General said that OPEC was looking at reaching a 5-year average of oil inventories after it decided to cut crude production last week and added that the global oil and gas industry is looking towards stability and bringing back balance rather than increased crude oil prices. «We are interested in stability so as to incentivise investment in the sector, the major issue right now is deploying of resources so as to ensure future supplies and meet global demand,» Barkindo said. «For a country like India which is the third largest consumer of energy such a move will ensure that its energy demands are met in the future,» he added.
He also that OPEC is not worried about the Shale gas industry in the US ramping up production in response to the decision to cut production and its subsequent impact on crude oil prices.
Brent crude oil prices rose above $55 a barrel on Monday, trading at a fresh 16-month high, on rising prospects of a tightening market after OPEC members agreed on a landmark deal to cut production last week.
