The Secretary General of the Organisation of Petroleum Exporting Countries, HE Mohammad Sanusi Barkindo, has indicated that the oil market will likely continue to record stability.
In his keynote address delivered at the Nigeria International Petroleum Summit, 19 February 2018, Abuja, Nigeria, he stated that: ‘’There are further positive signs for the global oil market. Global economic growth is forecast at 3.8% for both 2017 and 2018. Indeed the IMF reported in Davos at the World Economic Forum that 122 countries around the globe have registered positive economic performances.
‘’Correspondingly, global oil demand growth has also been on the rise; with the 2017 forecast having been revised up to now stand at 1.6 million barrels a day. For 2018, the encouraging dynamic is set to continue with a forecast of 1.6 million barrels a day. Additionally, all three benchmarks- Brent, WTI and Dubai- remain in backwardation.
‘’Despite these momentous achievements it would be extremely reductive to suggest that the Declaration of Cooperation is only about the voluntary adjustments in production. Undoubtedly, they have been indispensable for returning a degree of stability to the oil market.
‘’However, the adjustments are only the ‘tip of the iceberg’ of what the Declaration of Cooperation truly is. This historic agreement is an assertion of certain principles: namely, that we are always stronger together; that there are limits to what can be achieved working alone in silos, but there are limitless possibilities to what can be accomplished by working together. When these 24 participating countries join in concerted action, united by the common principles of equity, transparency and fairness, they can meet any challenge.
‘’The Declaration of Cooperation is also an invitation: an open invitation to all stakeholders in the energy community to join us and contribute their ideas, their know-how to achieving a sustainably stable oil market in the interests of producers, consumers and the global economy.
‘’This truly is a partnership which is broad and inclusive, as demonstrated by six additional countries issuing a ‘Declaration of Support,’ at the third OPEC- Non-OPEC Ministerial Meeting in November last year, which recognized and acclaimed this contribution to oil market stability.’’