The OPEC+ alliance has taken decisive actions to help reduce oil market volatility, OPEC Secretary-General Mohammad Barkindo said on Tuesday at the opening of the meeting of OPEC's economic and technical think-tank.
"DoC Participating Countries have taken proactive and pre-emptive actions to help reduce volatility, stabilize the oil market and provide a flexible platform for recovery with potentially broader participation in the coming years," Barkindo said, opening the meeting of the Economic Commission Board.
The two-day meeting-held twice a year-takes stock of the situation on the global oil market and the global economy. The board will review topics such as investment, expectations about recovery, and short- and long-term prospects of crude oil production, OPEC said today.
The meetings of the Economic Commission Board of OPEC usually precede the biannual ordinary meetings of the OPEC Conference, which are held in June and December.
This June, the meeting of OPEC's economic and technical think-tank will precede the meeting of the Joint Technical Committee (JTC) and of the Joint Ministerial Monitoring Committee (JMMC) planned for 17, 29, and 30 June, respectively, as well as the OPEC+ meeting planned for July 1.
The meetings packed from this week to the end of the month will be closely watched by the market for clues about the OPEC+ production policy after July 1, OPEC's take on the oil market, and the long-term opportunities and challenges for the oil industry. Additional insights into OPEC's expectations of global economic growth and oil demand could also transpire.
Global oil demand will rise by 6 million barrels per day (bpd) this year from the lows of 2020, led by strong consumption in China and the United States, especially in the second half of 2021 with growing economies and border reopenings, OPEC said last week in its Monthly Oil Market Report (MOMR) for June.
By Tsvetana Paraskova for Oilprice.com
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Comments
Its brilliant handling of the market earned it the respect of the world including the US oil industry. OPEC+ has managed to stabilize the market and bolster crude oil prices for the benefit of its members but not at the expense of the global oil economy.
Its approach has been live and let live.
Dr Mamdouh G Salameh
International Oil Economist
Visiting Professor of Energy Economics at ESCP Europe Business School, London