OPEC hopes for further talks with non-cartel countries
Baku, Azerbaijan, June 2
By Aygun Badalova - Trend:
OPEC hope that the talks that have evolved over the past year with non-cartel producers, will continue, Mohammed Bin Saleh Al-Sada, Qatar's minister of energy and industry and president of the OPEC conference said in the opening address to the 169th meeting of OPEC June 2 in Vienna.
"It is important that we maintain all possible avenues for cooperation and understanding for the benefit of OPEC countries in particular, and the world at large," Al-Sada said.
He stressed that since the last meeting on December 4, 2015, the global oil market has seen further volatility.
Global exploration and production spending fell by around 20 percent last year, and a further 15-percent drop is anticipated this year, according to Al-Sada.
"This is a major concern for an industry that generally sees investments increasing year on year to sustain production," he said.
He said that world oil demand this year remains healthy, with growth of over 1.2 million barrels per day. The majority of this, he said, will come from non-OECD countries.
He said OPEC anticipates non-OPEC oil supply to contract by 740,000 barrels per day this year, which is more than two million barrels per day lower than the growth of 2015.
The overall demand increase year-on-year for OPEC crude is around 1.8 million barrels per day, he said.
At the same time he stressed that stock levels remain high.
"The five average for OECD commercial stocks is currently at a surplus of around 360 million barrels. It is important that we take note of this figure on a downward trend. A more stable and balanced market will be beneficial to all," Al-Sada said.