Opec+ oil output deal could be ‘tweaked’

Meanwhile, UAE Minister of Energy and Infrastructure Suhail bin Mohammed Faraj Faris Al Mazrouei said that a tweak in production cuts is possible with a consensus formed among all members. “Opec+ are up to the challenge of doing whatever it takes to create that balance. I am proud of what has been achieved so far. We look forward to continuing this journey. We have the ability to tweak.”

The group, he said, has been disciplined in keeping track with the cuts. “We are all committed partners and it’s a fair deal. This group will continue to work together in medium and longterm cooperation,” Al

Mazrouei added.

Russia Minister of

Energy Alexander Novak forecasted demand for oil to continue to grow for at least next 10-15 years. “It’s too early to say the era of oil is over. It would take about two to three years to come back to 100 million barrels per day or close to that level.”

Opec secretary-general Mohammad Sanusi Barkindo revealed that global stimulus packages, including guarantees, amounted to nearly $25 trillion — about 20 per cent of the global GDP. He said the demand for oil is set to plunge by 9.8 million barrels per day this year but a recovery was expected next year. “We are seeing a contraction of nearly 9.8 million barrels a day for 2020. But the 2021 forecast is continuously being revised upwards north of 6.5 million barrels a day at the moment. And you have seen the reaction of the markets after the US elections. So there is no cause for alarm.”

Barkindo highlighted that all producers are showing 100 per cent compliance with the production cuts. “We have all risen to this challenge and shown commitment to stay the course.