Second round of OPEC output cuts must include non-OPEC members: OPEC Secretary General

Mohammed Barkindo, OPEC’s secretary general says for the OPEC output cuts to continue into the second half of 2017, non-OPEC members currently participating must continue to do so. OPEC photo.

Meeting in May to discuss possible continuation of OPEC output cuts

OPEC Secretary General Mohammed Barkindo said any decision to extend the OPEC output cuts deal into the second half of 2017 would be made only if non-OPEC members signed on to the current accord agree to participate.

This week at the CERAWeek energy conference in Houston, OPEC held talks with shale oil producers and hedge fund executives. Barkindo said this marked the first time the cartel held bilateral meetings with shale producers and investment funds.

“I think we have broken the ice between ourselves and the industry, particularly the tight oil producers and the hedge funds who have become major players in the oil market,” Reuters reports he said in remarks on the sidelines of the energy conference.

Barkindo said OPEC plans to hold an event to consider the impact of oil futures on physical crude markets. He did not provide any details on such an event.

According to Barkindo, OPEC is expecting compliance to the supply deal to improve in February from January.

The OPEC supply cut deal has been a major factor in the 10 per cent increase in crude prices since the deal was struck in November.