Barkindo Optimistic as OPEC+ Decides on Production Easing

The Organisation of Petroleum Exporting Countries (OPEC) Secretary-General, Dr. Sanusi Barkindo, expressed optimism over the overall conditions of the oil market as the Joint Technical Committee (JTC) of the cartel and OPEC allies yesterday began a meeting to herald a resolution on whether to further ease crude oil production curbs.

OPEC stated that the fundamentals have significantly improved in recent months, a hint that a resolution to allow member countries pump more oil may be in the offing tomorrow during the OPEC+ ministerial meeting.

“The overall brighter picture in relation to the pandemic recovery efforts has led to the significantly improved oil market conditions and prospects for future growth,” Barkindo said at the JTC conference.

The 53rd meeting of the body, which held via videoconference to review the latest oil market developments and discuss future prospects, was convened in preparation for the 31st meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 18th OPEC and non-OPEC ministerial meeting planned for between today and tomorrow.

Barkindo underscored the vital role carried out by the JTC in providing high-quality technical analyses of the latest oil market developments, adding that the research and assessments conducted by the committee will serve as a crucial input to the decision-making process of the cartel.

He stated that the discussions will build on the successful deliberations of the last meeting and lauded the unwavering commitment and tireless efforts demonstrated by the participating countries.

“The Declaration of Cooperation (DoC) participants clearly continue to play an important and valuable role in accelerating the oil market rebalancing process,” he stated.

In the last edition of the OPEC’s Monthly Oil Market Report (MOMR), OPEC projected global oil demand to rise by six million barrels per day in 2021, while world economic growth was forecast at a rate of 5.5 per cent in the same period.

Usually, the DoC ministerial meetings are supported by the JMMC, which is tasked to analyse oil market developments, monitor the conformity of the DoC voluntary production adjustments and recommend further actions.

“A combination of improving market indicators and the ongoing commitment of DoC countries to restore stability to the global oil market suggests that we are on the right path to recovery from the Covid-19 pandemic, despite lingering uncertainties,” Barkindo added.