The Organization of Petroleum Exporting Countries and other major producers are committed to reducing oil stockpiles, and all countries participating in a six-month deal to pare output are committed to restoring the market’s stability, Barkindo said at a conference in Abu Dhabi. OPEC will decide at its meeting on May 25 whether to prolong the cuts it began making in January, he said.
“We are optimistic the policy measures have already placed us on the path of recovery,” Barkindo said in a speech. “Our collective action will continue to prove effective.”
OPEC and several other producers including Russia agreed in December to pump less oil in an orchestrated effort to end an oversupply weighing on prices. Compliance with the cuts was more robust in March compared to the previous month, Barkindo said. Benchmark Brent crude has gained about 25 percent since the agreement took effect in January and was 2 cents lower at $54.87 a barrel at 8:17 a.m. in London.
OPEC’s compliance with the cuts improved to 104 percent in March from 90 percent in February, while the rate for non-OPEC producers in the deal increased to 64 percent from 38 percent over the same two months, the International Energy Agency said in an April 13 report. OPEC’s average compliance for 2017 is 99 percent, it said.