By Trend
Signs of more confidence and optimism are gradually but steadily
returning to the oil market and oil industry, Mohammad Sanusi
Barkindo, OPEC Secretary General, said at the Egypt Petroleum Show,
Trend reports.
He pointed out that time after time OPEC has taken a proactive
stance at times of supply shortfalls, geopolitical turmoil and
financial crises.
“Particularly important in reducing the downside supply risk in
the oil market has been the proactive and early output adjustments
by the ‘Declaration of Cooperation’ partners. As a result, the OECD
stock overhang is targeted to reign in towards the latest five-year
average,” said OPEC secretary general.
Barkindo noted that once again, the participating countries have
demonstrated their selflessness, dedication and commitment to
implementing their voluntary, collective decisions in a transparent
and verifiable manner.
“However, a great deal of uncertainty that is beyond the capacity
of any one stakeholder to control still remains. Geopolitical
tensions, the impact of sanctions, the fact that the risk of a
recession has not completely abated ̶ these factors could continue
to impact the market throughout 2019. Nevertheless, the Declaration
of Cooperation partners remain steadfast in their determination to
take the necessary action to stabilize the market during the course
of the year,” he said.
The key to OPEC’s longevity lies in the fact that at its core,
OPEC has a clear and simple objective, noted the secretary
general.
“This objective serves producers as much as it does consumers.
And this objective has a vast array of multiplier effects. This
objective, this raison d'être, can be surmised in just 4 words:
sustainable oil market stability,” noted Barkindo.
The Declaration of Cooperation constitutes an unprecedented
milestone in the history of the Organization of the Petroleum
Exporting Countries (OPEC). For the first time ever, the Member
Countries of OPEC coordinated with 11 non-OPEC oil producing
countries in a concerted effort to accelerate the stabilization of
the global oil market through voluntary production adjustments,
which amounted to approximately 1.8 million barrels per day.
The Declaration was an outcome of the Joint OPEC-Non-OPEC Producing
Countries’ Ministerial Meeting held on 10 December 2016 and was
effective for an initial period of six months. The Second Joint
OPEC-Non-OPEC Producing Countries’ Ministerial Meeting, held on 25
May 2017, decided to extend the voluntary production adjustments
for another nine months commencing 1 July 2017. The sustainable oil
market stability sought by the Declaration is in the interests of
producers, consumers, investors and the global economy at large. At
the third joint OPEC-Non-OPEC Producing Countries’ Ministerial
Meeting, held on 30 November 2017, it was agreed to amend the
Declaration of Cooperation so that it will take effect for the
entirety of 2018.
The core principles of transparency, equity and fairness which have
underpinned the Declaration of Cooperation infuse all aspects of
OPEC’s interactions with its non-OPEC oil producing partners,
including cooperation at a research and technical level.
---
Follow us on Twitter @AzerNewsAz