OPEC's secretary-general said on Jan. 19 he was cautiously optimistic the oil market would recover this year from the slump in demand brought on by the coronavirus pandemic.
Monthly meetings of OPEC and allies led by Russia—a group known as OPEC+—are there to stop an imbalance from re-emerging, OPEC's Mohammad Barkindo told a virtual forum.
"We all agree that the recovery is fragile, there are still more uncertainties, but we are cautiously optimistic that the recovery will materialize this year," Barkindo said at the Atlantic Council Global Energy Forum.
Oil prices have rallied to an 11-month high this month, helped by a Jan. 5 decision by most members of OPEC+ to hold production steady in February and a pledge by Saudi Arabia to voluntarily cut output.
India's oil minister, Dharmendra Pradhan, said at the same event that the unexpected move to cut output by some OPEC nations had led to a price rally and was creating confusion for consuming countries.
"This kind of scenario will push us to more alternative methods of energy sourcing," Pradhan said.
Barkindo, in response, said OPEC+ needed to be flexible and had stable markets as its target.
The energy minister for OPEC member the United Arab Emirates (UAE) earlier told the same event he saw the start of the market recovery this year.
"This year the way we see it is a year of recovery, whether it's going to be the end of the year where we are supposed to reach the balance or the beginning of 2022," Suhail al-Mazrouei said.
The UAE minister also said he saw good oil demand growth in China and India as more countries begin their coronavirus vaccination campaigns.
Recommended Reading
Paisie: Crude Prices Rising Faster Than Expected
2024-04-19 - Supply cuts by OPEC+, tensions in Ukraine and Gaza drive the increases.
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
Marketed: BKV Chelsea 214 Well Package in Marcellus Shale
2024-04-18 - BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.