The organisation of Petroleum Exporting Countries (OPEC) is optimistic of near stability in the oil market.
Mohammad Sanusi Barkindo, secretary-general of OPEC stated Wednesday, that he remained optimistic that the energy market will ‘rebalance’ with stability restored in near term.
Barkindo, alongside other OPEC officials, stated this when he met with Gabon’s President, Ali Bongo Ondimba, and the country’s minister of petroleum and hydrocarbons, Pascal Houangni Ambouroue in Libreville, the capital city of Gabon.
“I am optimistic that the market will be rebalanced and together with the help of Gabon we will restore stability to the market,” Barkindo said.
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While giving an insightful overview of the oil market, he described the current oil price cycle, which started in 2014 as one of the most severe price cycles in recent years, with prices dropping by 80 percent, and described how it has been affecting the market, as well as the industry.
The secretary-general also described the ongoing collaborations between OPEC and non-OPEC producers, which are built on the solid foundation established by last year’s supply adjustment decisions, including the historic Declaration of Cooperation.
He highlighted the impact it has had on the market so far, particularly the drawing down of stocks by 90 mb from more than 300 mb in January 2017.
Additionally, he briefed the President on the decisions taken in May to extend the adjustments for nine additional months, starting from July, as well as the outcome of the most recent meeting of the Joint OPEC/non-OPEC Ministerial Monitoring Committee (JMMC) in St. Petersburg, Russia.
He thanked the Gabonese President for receiving the OPEC delegation and for the warm hospitality, as well as congratulating the President for his country’s decision to rejoin OPEC, a relationship, which he described as mutually beneficial.
“We are passing through a difficult time and if it had not been for OPEC, it could have been much more difficult,” the Gabonese president said in response.
Ondimba also underscored the importance and value of the technical assistance the country receives from various OPEC member countries, particularly now that Gabon “has embarked on a plan to transform its oil industry” and make it more sustainable.
Gabon had originally become a full member of OPEC in 1975 but then terminated its membership in 1995. It re-joined the Organization once more in July 2016.
Meanwhile, oil prices surged on Thursday, with signs of a tightening U.S. market though hampered by ample supplies from OPEC producers.
According to Reuters, benchmark Brent crude LCOc1 jumped five cents at $52.41 a barrel by 1145 GMT. Equally, U.S. light crude CLc1 was five cents higher at $49.64.