OPEC’s Barkindo says balanced oil market is in sight

OPEC Secretary General Mohammad Barkindo listens during a news conference after a meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna, Austria, November 30, 2016. REUTERS/Heinz-Peter Bader

LONDON  – Efforts by global oil producers to curb production are helping to speed up the balancing of the crude market, OPEC’s secretary-general said on Thursday.

“There is no doubt that this market is rebalancing at an accelerating pace,” Mohammad Barkindo said in a speech at the Oil & Money conference in London.

“Stability is steadily returning and there is far more light at the end of the dark tunnel we have been traveling down for the past three years.”

Oil prices have fallen by 50 percent since mid-2014, prompting energy companies to cut back on exploration and producers to curb production.

Producers from OPEC as well as a group of non-OPEC countries led by Russia have agreed to reduce output by 1.8 million barrels per day until March 2018.

That pact is aimed at supporting prices and reducing oil stock levels in OECD industrialized countries to their five-year average.

Stock levels in September were about 160 million barrels above that average, Barkindo said, which is down from 340 million in January.

Reporting by Alex Lawler; writing by Jason Neely(Reuters)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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