New Delhi [India], Oct 15 (ANI): The Organisation of the Petroleum Exporting Countries (OPEC) on Tuesday said that its members are determined to ensure that 'relative stability' in the oil market is sustained beyond 2020.
"We have committed ourselves that relative stability in the oil market is sustained beyond 2020," OPEC Secretary-General Mohammad Sanusi Barkindo said while speaking at the third India Energy Forum organised by CERAWeek.
"I am hearing resounding calls of all the players that they are determined not to allow a relapse to the downturn that we just navigated out of. Meaning they will do whatever is possible within their powers to ensure that this relative stability is sustained beyond 2020," he added.
"All the leading oil producers are committed to this," the Secretary-General stressed, further stating that the Kingdom of Saudi Arabia and the Russian Embassy in Riyadh also "reiterated their commitment to this stability in the market" only yesterday.
Focusing on the present market conditions, Barkindo said: "What we believe is currently driving the market. It has more to do with the demand side of the equation and not the supply. Supply is well constrained, both in OPEC and non-OPEC groups."
He stated that the organisation is currently witnessing a deceleration in growth in North America, especially in the shale basins of the United States.
"But looking at the demand side, the continuous reports on the global economy from the industry and media continue to cast a long shadow on the global economy largely due to trade disputes between the US and China," he added.
As a result of the trade dispute, the Secretary-General said the financial markets that have come to play an increasing role in the evolution of prices are seen to take a bearish view of the continuous growth of the economy, and by extension, demand.
"Therefore, you can see we have become more cautious in our projections of demand for both 2019 and 2020," he said.
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