After reaching record-high levels of more than 380 million barrels over a five-year average, the Organization for Economic Co-operation and Development's (OECD) commercial oil inventories have steadily fallen to stand 140 million barrels above the five-year average in October, the head of OPEC said on Monday.
In a statement after the second technical meeting of OPEC and non-OPEC producing countries in Vienna, Mohammad Sanusi Barkindo, OPEC secretary general said that despite naysayers claiming that success could not be reached by cutting oil output, OPEC and non-OPEC countries have accomplished success to combat low oil prices in the market.
"We have done it with equity, transparency, inclusiveness and fairness. The current market conditions, the returning level of confidence and optimism in the industry are all evidence of the outcome of our joint efforts," said and added that the current market conditions, the returning level of confidence and optimism in the industry are all evidence of the outcome of our joint efforts.
In addition he said that excess crude in floating storage has been drawn down considerably, by 50 million barrels since June 2017, supported by the shift in the market structure for the first time since the summer of 2014.
"All major crude oil benchmarks have flipped into backwardation, signaling clearly a market that is steadily returning to balance," he underlined.
The first technical meeting of OPEC and non-OPEC producing countries was held on May 19 this year. Seventeen countries participated in this event, including five non-OPEC countries.
On Thursday this week, Vienna will host the 173rd (Ordinary) OPEC meeting and the third OPEC and non-OPEC ministerial meeting in which participants are expected to discuss the extension decision.
(Anadolu Agency)
