OPEC and allies are committed to market stability
Compliance with production quotas between OPEC and its allies reached 136%
The Organization of the Petroleum Exporting Countries (OPEC) and its allies are committed to the stability of the oil market beyond 2020, with relatively tight physical supplies worldwide, said Mohammad Barkindo, OPEC general secretary, on Tuesday. The fulfillment of its production quotas between the international organization and its partners reached 136% limiting world supplies, said Barkindo.
Specifically, the commitment is aimed at a pumping reduction of 1.2 million barrels per day (bpd) until March 2020 to support prices. The producers will meet again on December 5 and 6.
Barkindo also stated that the members of the pact such as Russia and other oil exporters allied with the OPEC + pact were “determined not to allow a relapse in the recession that we just left,” in reference to a period of low oil prices in 2014-2015 that led OPEC to reduce production. He asserted that they will do everything to ensure that relative stability is maintained beyond 2020.
Forecast change
The forecast of OPEC’s global economic growth for 2020 was reduced from 3.1% to 3% and “it seems increasingly likely that the growth slowdown in the United States will move to 2020.”
Some economic perspectives have depressed oil prices. Brent has fallen by about 22% from $ 75.60 a barrel, the highest of 2019 reached April 25.
K.Villarroel
Source: lta.reuters
