KUWAIT: Kuwaiti Oil Minister and Minister of Electricity and Water Mohammad Al-Fares said that the strategy of OPEC+ and the unprecedented commitment to reducing oil production in addition to the voluntary reduction made by Saudi Arabia during the current and next months by one million barrels per day have greatly supported the oil market.
Global oil markets are going through a corrective phase as a result of the OPEC+ historic decision that has positively affected the rebalancing of the oil markets. Speaking before taking part in the OPEC+ Joint Ministerial Committee for Production Control meeting yesterday, the minister stressed that Kuwait supports all OPEC+ decisions aimed at restoring balance to the oil market and adjusting the balance of supply and demand.
The Joint Technical Committee (JTC) had held its 48th meeting to assess oil market conditions and examine its developments and trends on Tuesday. OPEC Secretary General Mohammad Sanusi Barkindo opened the meeting by highlighting the improving prospects for the global oil market and the world economy at large. The global economy is forecast to grow by 4.4 per cent in 2021, a substantial shift from -4.1 per cent last year.
“With the crude oil market currently switching into backwardation, we are hopeful that 2021 will be a good year for overall demand,” Barkindo said. The Secretary General also underlined the effective role of the Declaration of Cooperation (DoC) in helping to restore confidence and balance in the global oil market throughout the COVID-19 pandemic, noting that the DoC has become a model platform for multilateralism and international dialogue.
Barkindo said that the DoC’s actions have benefited producing and consuming countries alike by supporting market rebalancing and stabilization. “Our careful market monitoring, regular consultations, and step-by-step approach have been instrumental in providing much-needed support and assurance throughout the very, very difficult months of 2020, and continue to bear fruit for the market in 2021,” the Secretary General stated. The JTC and JMMC were established under the framework of the landmark DoC, which was signed at the First OPEC and non-OPEC Ministerial Meeting on 10 December 2016 in Vienna, Austria. The JTC is the JMMC’s technical think-tank. – KUNA