OPEC eyeing global consensus on cutting oil production

opec-eyeing-global-consensus-on-cutting-oil-production

The Organization of the Petroleum Exporting Countries (OPEC) is eyeing a global consensus in cutting oil productions, the group’s chief said on Tuesday.

“In order to restore stability at a sustainable level, we need to work with non-OPEC members including Iran and Iraq,” OPEC Secretary General Mohammad Barkindo said at the 23rd World Energy Congress in Istanbul.

The OPEC recently said in their Algeria Meeting that they intend to cut down oil output to 32.5 million bpd from 33.24 million bpd. However, details have yet to be laid out when the members meet in November.

Barkindo said that the environment has responded positively that a global consensus becomes possible more than ever after the OPEC meeting in August.

“If we work together in a collective way we are sure that we can re-balance the market,” he said.

Russian Minister Alexander Novak said that the market needs a re-balance in order to achieve a fair price. “In the face of a lack of investment, the diversity and the quality of energy resources will decrease as well,” he said.

The minister said that the development pushed Russian President Vladimir Putin to declare that freezing or cutting oil production is the best way to deal with the crisis at hand.

“We are ready to join in all possible cooperation here as we believe that OPEC is the most distinguished and reputable institution,” added Novak.

French Oil Company Total CEO Patrick Pouyanne said that an increase in gas price became a response to Putin’s statement on Monday.

Following Putin’s statement at the Energy Congress, Brent petrol price grew 3.1 percent to $53.54.

“In the face of the growing crises, Total has only achieved 400 billion dollars of investment instead of 700 billion dollars,” Pouyanne added.

OPEC member will meet with Russia and other non – OPEC nations, according to the congress press center.

“What we expect here is common understanding between ourselves and non-OPEC countries in the implementation of the Algeria accord,” Barkindo said. “I think there is a convergence of views, which I see. Istanbul is an opportunity for putting up the building blocks going forward.”

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