The president of the Organization of the Petroleum Exporting Countries (OPEC) conference Suhail Mohamed Al-Mazroui announced during the Algeria meeting on Sunday that current oil outputs should be able to keep the global oil market balanced.
Al-Mazroui said during the opening of the OPEC and non-OPEC Joint Ministerial Monitoring Committee (JMCC) in Algiers: “The current oil production capacity is able to ensure and maintain a balanced global oil market.”
He added that OPEC can “control and maintain the balance for a long time”, and that neither overstocking nor destocking will be required.
Al-Mazroui, who is also the UAE Energy Minister, called for greater dialogue between OPEC members, non-members and consumer nations, saying that he expected OPEC “to attract more oil producer countries to join the agreements and helps safeguard and sustain the global oil market balance.”
The JMMC consists of four member states, Algeria, Saudi Arabia, Kuwait and Venezuela, as well as two non-members Russia and Oman.
The objective of the JMCC was to ensure the success of the 2016 Declaration of Algiers, which aimed to reduce oil outputs across the board by 1.8 million bpd to adjust production in the range of 32.5 million bpd to 33 million bpd. This was addressed in an effort to combat plunging oil prices.
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According to OPEC’s World Oil Outlook (WOO) 2018 report, which was launched at the conference, oil is expected to remain the primary fuel source with the largest share in the global energy mix through to 2040. Demand for oil of that period is expected to climb to more than 111.7 million barrels per day.
The demand for natural gas will see the largest demand growth in absolute terms, while the demand for renewables will witness the largest proportional growth.
OPEC secretary general Mohammad Sanusi Barkindo, who unveiled the WOO, said: “The importance of these recent developments, specifically in terms of helping achieve sustainable market stability, is clearly vital across all timeframes.”