The Organization of the Petroleum Exporting Countries says it is aware of underlying risks in the oil sector, assuring that it is monitoring global oil market developments.
This assurance was given by the organization at the RBC Energy Conference held in New York.
According to OPEC’s Secretary General, Mohammad Barkindo who made a statement via teleconference to the RBC Energy Conference, in the past 30 months OPEC, along with its non-OPEC partners in the ‘Declaration of Cooperation’, has continually demonstrated its commitment to do whatever it takes to balance and stabilize the oil market, in the interests of both producers and consumers.
“We also recognize the fact that underlying risks remain. We are closely monitoring oil market developments, which have seen a high level of volatility in recent weeks, with major challenges and uncertainties related to ongoing trade negotiations, monetary policy developments, as well as geopolitical issues.
“The economic bearishness has led to many institutions revising down their expectations for the global economy and consequently oil demand growth. As you all know, there has also been a significant change in market sentiment, in both equity and financial markets, as attention is increasingly being focused on the Federal Reserve and the trade negotiations,” he said.
That, the OPEC secretary general said would play into the organization’s calculations in the upcoming ministerial meetings, noting that OPEC has a vested interest in the continued growth and stability of the global economy.
Barkindo added: “We have been agile and flexible with the partners adapting course depending on market conditions. When the market appeared skewed to oversupply, voluntary production adjustments were adopted and implemented, as was the case in December 2016 and December 2018, and equally, when concerns regarding demand outpacing supply surfaced as the market tightened, as was the case in June 2018, partners in the ‘Declaration’ took appropriate action.”
He stated further that when the next OPEC Ministerial Conference and the OPEC and non-OPEC Ministerial Meeting, convene “in the coming weeks”, attempts will be made to underscore that “all countries remain resolute” in continuing to deliver on this commitment for the remainder of 2019 and beyond.