Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

OPEC+ will ensure oil prices do not plunge again, says OPEC chief

Published 10/15/2020, 06:43 AM
Updated 10/15/2020, 07:30 AM
© Reuters. FILE PHOTO: A 3D printed oil pump jack is seen in front of displayed OPEC logo in this illustration picture

© Reuters. FILE PHOTO: A 3D printed oil pump jack is seen in front of displayed OPEC logo in this illustration picture

By Ahmad Ghaddar and Alex Lawler

LONDON - The OPEC+ alliance will ensure oil prices do not plunge steeply again when it meets to set policy at the end of November, OPEC's Secretary General said on Thursday, adding that demand has been recovering more slowly than expected.

"I want to assure you that the OPEC, non-OPEC partnership will continue to do what it knows best, by ensuring that we don't relapse into this almost historic plunge that we saw," Mohammad Barkindo said.

Barkindo was answering a question at the Energy Intelligence Forum on whether there was room for a planned increase in oil output from January by OPEC+, a grouping that includes OPEC states, Russia and other allies.

"We have to be realistic that this recovery is not picking up pace at the rate that we expected earlier in the year," he said. "Demand itself is still looking anaemic."

A technical OPEC+ committee meeting is taking place on Thursday to discuss compliance with oil cuts and market fundamentals.

The group had 102% compliance with its cuts in September, two OPEC+ sources told Reuters.

Countries such as Iraq, Nigeria and the United Arab Emirates, which had fallen short of their commitments, have been asked to make additional cuts until the end of the year to compensate for the shortfalls.

Barkindo said the compensation scheme was working well.

OPEC+ is due to taper production cuts by 2 million barrels per day (bpd), from 7.7 million bpd currently, in January.

Barkindo said when OPEC+ holds its ministerial meetings on Nov. 30 and Dec. 1 it will take stock of the whole year to inform any decision to stay the course or amend its policy.

© Reuters. FILE PHOTO: A 3D printed oil pump jack is seen in front of displayed OPEC logo in this illustration picture

On Tuesday, the energy minister from the United Arab Emirates told the same event that OPEC+ will stick to their plans to taper oil production cuts from January.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.