First Published: 2017-04-19

OPEC 'optimistic' about oil price recovery
OPEC Secretary General says cartel is optimistic policy measures of oil output cuts are leading to price recovery.
Middle East Online

Optimism on the horizon

VIENNA - Oil-exporting cartel OPEC is optimistic that production cuts agreed with non-members to prop up prices will lead to a recovery in the market, its chief said on Wednesday.

"We are optimistic that the policy measures we have taken already place us on the path of recovery," OPEC Secretary General Mohammad Sanusi Barkindo said at an energy forum in Abu Dhabi.

OPEC members agreed in November to cut production by 1.2 million barrels per day for six months beginning from the start of the year.

Some non-cartel producers, led by Russia, joined in in December committing to cut output by 558 million bpd.

The OPEC chief did not take a position on whether oil ministers from participating countries would extend the cuts when they meet in Vienna next month.

"These 24 countries, I believe, will take a decision that will be in the best interest of not only producers but also consumers and the global industry in general," he said.

OPEC and non-OPEC producers said after talks in Kuwait last month that they were looking into extending the output cuts, as compliance with the agreement has increased.

Barkindo said the joint action has put OPEC and other producers in the "driving seat" to dictate events instead of "reacting to market developments."

The cuts were agreed to help restore market stability "by addressing one variable, which is stock," he said.

"As a result of the rising stock over the past years, the equation has gone out of balance."

All producers taking part in the cuts are committed to restoring stability, he said.

Oil prices have dropped by around half since 2014 and currently hover just above $50 per barrel.

 

Iraqi Kurds may postpone referendum in return for concessions

Assad says no Syria ties for countries backing rebels

Rouhani says top priority is protecting nuclear deal from US

Iraqi-Arab Gulf rapprochement makes headway

In Egypt, Syrian refugees recreate Syria

In African tour, Sisi seeks to rebuild ties, address security and water concerns

Syria’s transition scenarios for future rounds of talks

Dubai real estate market sets the pace for renewed growth in the GCC

German-Turkish intellectual held at Ankara’s request

Jordan’s municipal elections marred by deaths, riots

Russia doubts IS claim of stabbing attack in northern city

Turkey slams 'arrogant' German reaction to Erdogan poll call

Police confirm Finland 'terror attack'

Spain hunts suspects as IS claims attack

Aid project helps Syria refugees feel at home in Jordan

Lebanese army launches anti-IS offensive on Syria border

UN demands access to Yemen ports

Low-cost attacks a new reality for Europeans

Forces of Libya's Haftar say commander wanted by ICC in detention

Yemen rebels urged to free political commentator

Iranian footballer breaks silence over ban for playing Israelis

Erdogan meddles in German politics

IS fighters almost encircled in Syrian desert

For Israel, White House ties trump neo-Nazis and antisemitism

Israel freezes implementation of settlement law

Saudi Arabia installing cranes at Yemen ports

13 dead, 100 injured in two Spanish seaside city attacks

Iran reform leader ends hunger strike

Van ploughs through pedestrians in Barcelona terror attack

13 killed in Barcelona van attack

Iraq acknowledges abuses in Mosul campaign

Netanyahu under fire for response to US neo-Nazism

Israel to free high-profile suspects in money laundering probe

Spanish police shut down jet-ski migrant smugglers

Syrian actress, activist Fadwa Suleiman dies in Paris

Israeli court extends detention for Islamic cleric over ‘incitement’

UAE to provide $15 million a month to Gaza

Sudan's Bashir 'satisfied' with Nile dam project

US-backed rebels say American presence in Syria to last ‘decades’

Tunisian clerics oppose equal inheritance rights for women

Israel strikes almost 100 Hezbollah arms convoys in 5 years

UN hopes for eighth round of Syria talks before year’s end

LONG READ: How Syria continues to evade chemical weapons justice

Civilians killed in US-led raids on Raqa

Qatari pilgrims begin flooding into Saudi by land