Barkindo: “OPEC, non-OPEC oil cut compliance to rise in coming months”

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    Barkindo said, during  The International Petroleum Week Conference in London, he did not rule out further cuts, if necessary, but said "it’s too early for us to begin to second guess" what market conditions would be like, when OPEC ministers next met on May 25 in Vienna.

    Barkindo said “The 11 non-OPEC countries that are party to the production cut deal will also be invited to confer with OPEC in Vienna to determine their next course of action”.

    "Confidence has returned to this market, but I think going forward, we have to watch how stock levels continue to respond to the full and timely implementation of declaration of cooperation between OPEC and non-OPEC countries," he said.

    The deal, which runs from January through June, calls for OPEC’s 13 members to cut a combined 1.2 million bpd from October levels down to a range of 32.5 million-33 million bpd, while the 11 non-OPEC countries, led by Russia, have committed to a 558,000 bpd cut.

    OPEC has said the deal is aimed at reducing global stock overhang down to its 5-year average.

    Barkindo has acknowledged that goal is still a ways off.

    "Stocks are still very high, and it will take some time for the implementation process to go through," he said.

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