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12

OPEC bulletin 8–9/17

C o n f e r e n c e N o t e s

4

t h

M e e t i n g o f t h e J o i n t M i n i s t e r i a l M o n i t o r i n g C o m m i t t e e

OPEC Secretary General

optimistic that joint efforts

are working

OPEC Secretary General, Mohammad Sanusi Barkindo,

began his remarks by expressing his appreciation to the

Russian Federation and Minister of Energy, Alexander

Novak for hosting the meeting and for his delegation’s

ongoing leadership role in the historical OPEC-non-OPEC

cooperation over the previous months.

He also commended the President of the Conference

and the JMMC Chairman for their unwavering support of

the joint efforts to bring stability, growth and investment

back to the global oil market.

He then mentioned his last visit to Russia in June and

the ongoing importance of OPEC-Russia relations.

“I was last here back at the start of June for the pres-

tigious St. Petersburg International Economic Forum. It

was a truly global gathering of leaders and experts. This

followed the meeting of the 6

th

High-level OPEC-Russia

Energy Dialogue in Moscow on the last day of May. This

was another opportunity to explore and advance this

important dialogue, which is a great example of an active

and well-structured dialogue among producing nations,

as well as discuss opportunities to further institutional-

ize the dialogue between OPEC and non-OPEC on a sus-

tainable basis.”

During that visit, the Secretary General also had the

opportunity to meet with the Russian Prime Minister

and discuss the deepening ties between OPEC and

Russia.

“Whilst in Moscow I was also extremely grateful for

the opportunity to meet with Dmitry Medvedev, Prime

Minister of the Russian Federation. We discussed the

‘Declaration of Cooperation’ and the good relations

between OPEC and Russia that are playing a role in help-

ing the oil market to recover from the downturn that was

felt throughout the industry in 2015 and 2016, as well

as ways and means to enrich and deepen our important

energy dialogue.”

The Secretary General also acknowledged the key

role being played by the JTC and its leadership team in

supporting the implementation process.

“I would like to acknowledge the hard work of the

Joint Technical Committee, ably supported by the OPEC

Secretariat, whichmet here in St Petersburg only two days

ago on July 22.

“Your efforts in supporting thisMinisterial Committee

are greatly appreciated. I would particularly extend

my deep appreciation to the two Co-Chairs of the JTC,

Haitham Al-Ghais and Pavel Sorokin, for their ongo-

ing and important work to support the ‘Declaration of

Cooperation’.”

He proceeded to highlight a number of key oil market

developments that had occurred since the last meeting

of the JMMC.

“We continue to see high conformity levels among

OPEC and participating non-OPEC producing countries

to the ‘Declaration of Cooperation’. We believe that the

overall conformity figures for participating countries in

the first half of the year are a convincing demonstration

of the willingness of all countries to help rebalance the

market.”

In terms of inventories, he said global stocks were

decreasing, but there was still more to be achieved.

“Secondly, while a number of headwinds in the first

quarter of 2017 limited the drawdown of stocks, we are

now seeing OECD stock levels fall on a regular basis.

While it is clear we are heading in the right direction, the

overall picture underscores that more needs to be done.

We are evidently not where we want to be in terms of

reaching the five-year average.”

Two other positive developments he outlined were

the solid growth in global oil demand and an expanding

world economy.

“We believe demand is holding steady, with expec-

tations for around 1.3m b/d in both 2017 and 2018.

Moreover, we expect to see a significant increase in

global demand, of close to 2m b/d, from the second to

the third quarter this year. Undoubtedly this anticipated

boost in demand will contribute to further reductions in

commercial oil inventories. Additionally, we expect to