The Organisation of Petroleum Exporting Countries (OPEC) said its members slashed global crude oil supply by 1.6 billion barrels since May this year to stabilise the market and help firm prices.
OPEC’s Secretary-General, Muhammad Barkindo, disclosed this during a videoconference of the Crescent Ideas Forum with the theme, ‘The Outlook on Energy’.
Barkindo said the reduction in crude oil supply was taken in the interest of consumers, investors and the global economy.
“Since May, the production adjustments undertaken by the participating countries have helped reduce the global supply by around 1.6 billion barrels, a truly impressive feat given the economic uncertainty overshadowing the industry.
“I would like to stress that these efforts were undertaken not just for the good of the DoC (Declaration of Cooperation) participating countries, but in the wider interests of consumers, investors and the global economy in general.
“There can be no recovery without market stability, and no one stands to benefit from volatility,” the OPEC scribe said.
In April, OPEC delivered an unprecedented response to an unparalleled market shock, by adjusting output down by 9.7 million barrels per day or roughly 10 percent global demand at the time.
These efforts were spearheaded by leaders of major world oil producers and further supported by the G20, in the spirit of solidarity, at the group’s Extraordinary Energy Ministerial Meeting on April 10, 2020.
In June, the DoC re-affirmed the importance of these contributions to overall market stability and full participation in the agreed adjustments.
In addition, the participating countries agreed to a fair and effective compensation mechanism for those who were unable to achieve 100 per cent conformity in the first months of the agreement.
“These provisions stand out as a remarkable acknowledgement of both the commitment by these countries to support the market, and the scale of the challenge,” Barkindo stated.