On Thursday, OPEC’s Secretary-General Mohammad Barkindo said that the OPEC+ alliance would ensure that there would be no more plunge in oil prices on its policy meeting at end-November.
“I want to assure you that the partnership will continue to do what it knows best, by ensuring that we do not relapse into this almost historic plunge that we saw,” he said.
Barkindo said that when the Organization of Petroleum Exporting Countries and its non-member oil producer allies meet, it would take stock of the whole year to inform any decision to stay the course or amend its policy.
He said that as the current demand is still looking anemic, the oil market needs to be realistic that this recovery is not picking up pace at the rate that we expected earlier in the year.
OPEC+ is set to ease its oil output cuts by 2 million bpd in January, from the current 7.7 million bpd.
Barkindo added that so far, the compensation scheme for the countries which had fallen short of their commitments in the production cut pact was working well. On Thursday, a technical OPEC+ committee meeting took place to assess compliance with oil cuts and market fundamentals.
