Oil producers agree to stabilise global market


Members of the Organisation of the Petroleum Exporting Countries (OPEC) and non-members have confirmed their intention to continue work to strengthen the stability of the world oil markets in light of the agreement reached in 2016.

This came during the 10th meeting of the Joint Ministerial Committee to follow up the agreement to reduce the oil production of members of OPEC and its partners from outside the organization, which concluded on Sunday in Algeria. The OPEC countries and their partners have agreed on the need to maintain dialogue between them and consuming countries, considering that this would allow prices to serve the economy of both parties.

In a speech during the meeting, Algerian Energy Minister Mustapha Qaitouni emphasised the importance of working to find ways and means to ensure the sustainability of cooperation and dialogue not only between OPEC member countries and non-member countries but also between producing and consuming countries.

The Secretary-General of OPEC Mohamed Senusi Barkindo said that the efforts exerted by member states and non-members of the organisation have enabled the restoration of stability in the market, calling for continued dialogue on market fluctuations in order to maintain its balance.

Russian Energy Minister Alexander Novak called for expanding cooperation to achieve long-term stability in the global market. He also called for the need to think of expanding this partnership to face future challenges as the oil production reduction agreement approaches the end of 2018.

In late 2016, OPEC countries and several outside countries in Vienna agreed to reduce their oil production in an effort to get rid of supply curbs that would curb prices. The agreement was later extended in 2017 and 2018. The meeting of OPEC and non-OPEC oil exporting countries comes within the context of working to keep prices high, ensure continuity of oil investments and maintain a balance between supply and demand.

Sources and photo-credits: Gulf Times