The global oil market is witnessing a positive momentum due to crude production cuts by the Organization of Petroleum Exporting Countries (OPEC) and its allies, OPEC Secretary General Mohammad Barkindo said Tuesday.
“The positive market momentum we are seeing owes much to the decisive actions taken by the Declaration of Cooperation to adjust downwards overall crude oil production”, Barkindo said in a statement via Twitter.
“We all benefit from market stability: producing and consuming nations, investors, and the global economy,” he added.
Barkindo also pointed to the growing importance of international dialogue and cooperation for helping to stabilize the world energy markets and to provide a platform for oil market and economic recovery going forward, the statement said.
OPEC and non-OPEC oil producing nations have been cutting their crude oil output by a total of 9.7 million barrels per day (bpd) from June 1 through July 31, in order to mitigate the negative impact of the novel coronavirus (COVID-19) on weak global oil demand and low oil prices.
However, the group known as OPEC+ could curb the current production cut deal to a total of 7.7 million bpd starting from August 1, arguing that global oil demand has moderately recovered in the summer season, according to some media reports.
OPEC’s 42nd meeting of the Joint Technical Committee (JTC) took place via teleconference on Tuesday, in which the JTC provided advice for the Joint Ministerial Monitoring Committee (JMMC) on the oil market.
The JMMC will convene via webinar on Wednesday.
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