OPEC Secretary-General Mohammad Barkindoon Sunday said the ongoing mass vaccination campaigns against COVID-19 pandemic injected optimism into global economy and the oil market.
Opening the 47th meeting of Joint Technical Committee (JTC) of the OPEC and Non-OPEC countries; he thanked the committee’s members for their tireless efforts. This was during one of the most volatile periods in the oil industry’s history.
The Secretary General reflected on the proactive and decisive decisions; taken by the Declaration of Cooperation (DoC) countries in April, June, September and December 2020; highlighting the bold and timely actions of the DoC participating countries throughout the COVID-19 crisis.
“Collectively, we delivered an unprecedented response to an unparalleled market shock. It also continue to lead the industry on the road to recovery,” Barkindo said.
The secretary general also emphasized that “the outcomes of the Dec. 3 Ministerial Meeting pave the way for a gradual return of 2 mb/d to the market over the coming months. While the participating countries stand ready to adjust these levels depending on market conditions and developments.”
Barkindo highlighted that the global economy is forecast to grow by 4.4 percent in 2021; noting that the recent developments of the COVID-19 vaccine have injected optimism into the economy as well as the oil market.
On oil market developments, Barkindo noted; “We also anticipate that crude oil demand will shift from reverse to forward gear and rise to 95.9 mb/d this year, a gain of 5.9 mb/d from 2020.”
“The non-OECD (Organization for Economic Cooperation and Development); will be in the driver’s seat with growth of around 3.3 mb/d,” he also predicted.
The secretary general also concluded by underscoring the necessity of continuing to work together under the framework of the landmark DoC for the benefit of producers, consumers and the world economy at large.
The mandates of the Joint Ministerial Monitoring Committee (JMMC) and JTC; include reviewing the conditions and developments of the global oil market. Besides, monitoring the conformity levels to the voluntary production adjustments; adopted by OPEC’s 13 Member Countries and 10 key non-OPEC oil-producing countries.
The JTC meeting, also held via videoconference was in advance of the 25th Meeting of the JMMC; and the 13th OPEC and non-OPEC Ministerial Meeting scheduled for Monday, Jan. 4, 2021.