Trend Press / Vienna
The Organization of the Petroleum Exporting Countries (OPEC) has considered that the current oil market conditions prove that the production reduction agreement is bearing fruit.
In early 2017, OPEC members and independent producers began cutting production by 1.8 million barrels per day (bpd) for six months and extended in May for another 9 months ending in March 2018 in a bid to restore stability to oil markets.
"The current conditions in the oil markets and the level of confidence and optimism are evidence that the agreement to reduce production is bearing fruit," OPEC Secretary-General Mohamed Barkindo said in a statement read by Trend Press.
He pointed out that investments in the oil sector are beginning to return "which augurs well for the future," stressing the need to work to continue the commitment to cooperation and ensure continuity.
He pointed out that the commercial oil stocks of the Organization for Economic Cooperation and Development fell significantly to 140 million barrels in October.
Barkindo called for enhanced cooperation among oil exporting countries through an effective and transparent framework to ensure sustainable market stability in the medium and long term.
OPEC, Russia and other oil-producing countries are due to hold a meeting on August 30 in the Austrian capital of Vienna to decide whether or not to extend the production cut-off agreement.
With oil exporters meeting in anticipation, Brent crude prices rose today to a 30-month high.