Baku, Azerbaijan, Oct. 28
By Leman Zeynalova – Trend:
The decision made by OPEC in Algiers to cut the oil output has already reversed the market trend positively and reduced relative volatility, OPEC Secretary General Mohammad Sanusi Barkindo said.
He made the remarks during the first meeting of the High-level Committee of the Algiers Accord (OPEC member countries), according to the cartel’s website.
“Since the Algiers Accord, a ‘road map for implementation’ has already begun to take shape,” said Barkindo.
The market has been out of balance for too long, due primarily to supply driven forces, OPEC secretary general said, adding that these have led to a severe correction in prices, impacting required and timely investments, which is now threatening future supply.
He pointed out that OPEC and non-OPEC must now come together and take coordinated and timely action for the common good of all.
“While we have seen the re-balancing process already underway, the physical market remains in surplus,” said Barkindo. “A large stock overhang continues to persist. And today’s excess stocks of around 300 million barrels calls for our collective and urgent action.”
In September, OPEC producers agreed during the informal meeting in Algiers to cut down the oil output to 32.5 million barrels per day (bpd) from current production of 33.24 million bpd.
How much each country will produce is to be decided at the next formal meeting of OPEC in November.