Barkindo urges Asia countries to join output cut deal
For the foreseeable future, Asia-Pacific region will be the primary outlet for OPEC and Middle Eastern export barrels, said OPEC Secretary General Mohammad Sanusi Barkindo.
In his video message to the participants of the 33rd Asia Pacific Petroleum Conference in Singapore, Barkindo pointed out that until the year 2040, Asia-Pacific imports will expand and the Middle East exports are set to increase.
“Crude exports from the Middle East to the Asia Pacific region are expected to increase by 7.5 million barrels per day (mb/d) between 2016 and 2040, rising from 14.5 mb/d to 22 mb/d. So, for the foreseeable future, we can count on the Asia-Pacific region to be the primary outlet for OPEC and Middle Eastern export barrels,” he added.
However, according to OPEC secretary general, for these growth scenarios to materialize, there will be a need to see a rebalanced and stable oil market so that industry investment can return to sufficient levels necessary to secure future supply.
“I am here to confirm that the future outlook for the global oil market is improving with each new day thanks to the ongoing dedicated efforts of the 24 OPEC and non-OPEC producing countries who, through the Declaration of Cooperation, are contributing to the rebalancing of the global oil market,” he added.
Barkindo invited all Asian stakeholders to join OPEC and participating non-OPEC countries in efforts to restore a sustainable stability to the market so that that OPEC and its non-OPEC partners can continue to ensure a steady supply of oil and gas to help fuel Asia’s future economic growth and provide prosperity for its future generations.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
The reductions will be on the same terms as those agreed in November.
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