OPEC’s secretary general Sanusi Barkindo has said that the decision to freeze production levels within OPEC represents the cartels commitment to stable market conditions.
Speaking at the G-24 ministerial meeting in Washington D.C.,Barkindo said: “The landmark decision taken at the 170th (Extraordinary) Meeting of the OPEC Conference in Algiers came after many rounds of consultative meetings and intensive talks. It underlines the Organization’s continued commitment to a ‘sustainable stability’ in oil markets, for the mutual interests of producing nations, for efficient and secure supplies to consumers, and with a fair return on invested capital for all producers.”
OPEC took the decision to limit production levels to between 32.5 million and 33 million barrels per day.
“We should not forget the importance of lessening volatility and sustaining stability for the medium- and long-term given the world’s desire for more oil. However, the situation that has evolved over the past two years or so is putting the future at risk. We are currently witnessing a dramatic drop off in oil market investments. For example, global exploration and production spending fell by around 26 per cent in 2015 and a further 22 per cent drop is anticipated this year. Combined, this equates to above $300 billion,” he said.