OPEC bulletin 3–4/17
C o n f e r e n c e N o t e s
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
coupled with increasing US production in a seasonally
“However, outside the US, the global trend of
destocking has been broadly on track.”
Barkindo noted that, in recent months, he had spo-
ken to many financial market players active in the oil mar-
ket, at events in both London and Houston.
He said it was evident there was a significant level
of bullishness in the first two months of this year, with a
general recognition that the rebalancing was occurring.
But this was tempered somewhat by questions about the
“This included questions, such as: when can we
expect to see a strong and declining trend in stock lev-
els, particularly in the US? What can OPEC and non-OPEC
nations participating in last year’s decisions achieve in
the first half of 2017? And what might happen in the sec-
ond half of 2017?
“These are questions to focus the minds of this
Committee. Moreover, we need to remember the role that
these financial actors play in the oil market today. They
play a major function, possibly a significant and deter-
mining factor, in the value of the oil sold daily.”
Barkindo continued: “To highlight this, we need
to compare the size of the physical and the financial
markets for oil. The size of the physical market today
is 95m b/d, whereas, if we take open interest, includ-
ing all traders, the volume of the financial market for
oil represents more than 60 times that of the actual
Turning to the OPEC/non-OPEC production adjust-
ments, he reported that conformity levels in January
and February had been better than market expecta-
tions, but further advancements could, and needed
to be made.
“It is vital that we see the full commitment of each
and every participating country. We expect 100 per cent
conformity,” he stressed.
“This will be vital to help counter the market devel-
opments I have just highlighted and the increasing vol-
atility we have witnessed over the past couple of weeks.
“We still believe that the full and timely implementa-
tion of the decisions taken last year will see destocking
accelerate by the end of the first half of 2017 with posi-
tive upshots and an anticipated balancedmarket towards
the end of the year.
“It is critical we keep our eyes on the goal. We need to
ensure an acceleration of the drawdown of the stock over-
hang and bring the necessarymarket rebalancing forward.
“I cannot think anything to the contrary. We need to
be patient and demonstrate our strong will to allow our
decision to run its course.
“I join the chair and the co-chair in urging all partic-
ipants to meet their obligations under the very guiding
principles of fairness, equity, transparency, and timeli-
ness,” concluded the OPEC Secretary General.
Alexander Novak, Minister of Energy, Russian Federation, talking to the international media.