Secretary-General of the Organization of Petroleum Exporting Countries (OPEC) Mohamed Barkindo said Wednesday the member states of the cartel showed in March higher compliance to bring down oil stocks.
Speaking at the 3rd annual Gulf Intelligence media forum in Abu Dhabi, Barkindo said March compliance data shows “higher conformity” with the OPEC output cut deal, Gulf Intelligence tweeted.
He added the agreement was “work in progress.” In order to stabilize oil markets, 10 out of 13 OPEC member states pledged in December 2016 to trim oil production for six months by 1.8 million barrels per day.
The agreement followed negotiations lasting for months after the OPEC basket price fell to 14-year low (at 22.5 dollars per barrel) in January last year, weighing on fiscal budgets of oil producing countries. Iran, Nigeria and Libya received special concessions.
OPEC will meet on May 25 to assess markets and to decide whether to extend the deal or not.
The price of oil traded almost unchanged at 52.78 dollars per barrel following Barkindo’s speech. Enditem