The oil ministers of the GCC bloc, comprising Oman, UAE, Saudi Arabia, Kuwait and Bahrain, joined Iraq in reaffirming their full commitment to the OPEC+ deal on curbing oil production in order to further speed up rebalancing of the oil markets.
The current developments and future prospects of the global oil markets were deliberated by the oil ministers of the GCC countries and Iraq, where H E Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, represented Oman at the teleconference on August 7.
The Organisation of the Petroleum Exporting Countries and allies, known as OPEC+, began a record supply cut in May to bolster oil prices affected by the coronavirus crisis. OPEC+ had agreed to cuts of 9.7 million bpd, or 10% of global output, from May 1, but that was never met.
At the end of the conference call, the six ministers issued a joint statement where they said the positive signs of improvement shown recently in the global economy were ‘very encouraging’.
“The ministers are very encouraged by the recent signs of improvement in the global economy and commend the efforts taken by countries all over the globe to reopen their economies in a safe way.”
The ministers reaffirmed their full commitment to the OPEC+ agreement. They emphasised the importance for all OPEC+ countries to meet their production targets in order to accelerate the rebalancing of the global oil market, and for those who overproduced in May, June and July, to compensate those volumes.
The ministers expressed their gratitude and appreciation to the Iraqi oil minister for his efforts and cooperation to achieve the balancing of the oil market while stressing Iraq’s importance to the success of the OPEC+ agreement.
The ministers stressed, again, that full commitment to the OPEC+ agreement and the compensation mechanism will accelerate the recovery of the global oil market to the benefit of oil producers, consumers, the energy industry and the wider global economy.”