The secretary general of the Organization of Petroleum Exporting Countries (OPEC) has said that discussions over further oil production cuts at its next meeting would be “premature at the moment.”
It is too early for OPEC+ to consider deepening cuts at its meeting in December to stabilize the global oil market, Mohammed Barkindo told Russian news agency TASS on Monday.
Participating countries to the production cut deal have around 136% conformity level in the agreement. “… We will continue to focus on the full implementation of the supply adjustments,” he said.
OPEC and its allies including Russia, also known as OPEC+, had agreed on Dec. 7, 2018 to lower their total production level by 1.2 million barrels per day (mbpd) to bring balance to the global oil market and support crude prices.
Later, the group decided in early July this year to extend the agreement until the end of March 2020.
After drone attacks on OPEC heavyweight Saudi Arabia on Sept. 14, the country saw its total output decline by 5.7 mbpd shortly before recovering to pre-attack levels.
However, the attacks created massive fluctuations in the market as prices saw a 14% decline — the biggest single day drop since the Gulf War in 1990.
Barkindo said OPEC members were “confident the Kingdom of Saudi Arabia was more than capable of restoring supplies” and added that no OPEC nation increased its individual supply during that time to take advantage of the situation.
The secretary general said the cooperation between OPEC and its allies would continue in the future.