May 22, 2017, 14:46 / Business / News

OPEC Secretary General: we see some light at the end of the tunnel

The OPEC agreement to limit oil production has a positive effect on the market; the parties to the agreements are firmly committed to supporting the process of market rebalancing. This was reported by the cartel's press office with reference to its Secretary General Mohamed Barkindo.

“Since the decision [to curb OPEC and non-OPEC oil production], we have seen significant positive sentiment returning to the market, although it was clear that there were unforeseen circumstances along the way. We must understand that rebalancing the market has never happened in a linear fashion. There are too many factors at play,” he said during the OPEC-India energy dialogue.

“Nevertheless, we are moving in the right direction,” Barkindo added, noting the high level of implementation of the agreement.

“The level of oil reserves is declining. Oil reserves in OECD countries fell by 12 million barrels in April, the decline for the third month in a row. Overall inventory levels are 253 million barrels above the five-year average, up from 282 million barrels in March and 329 million barrels in February. Moreover, we also see figures showing a decline in floating storage stocks of 40 million barrels since the beginning of the year,” said the cartel’s secretary general.

“Outside the US, we believe the global downward trend in inventories continues. The US obviously does not reflect the global trend given the increase in production in the first quarter of 2017, but even here the market is showing a drop in oil reserves due to increased refining,” Barkindo noted.

“Regarding how we see the process today, it is easier to say: we see some light at the end of the tunnel,” he added.