New Delhi [India], October 10 (ANI): Organisation of the Petroleum Exporting Countries (OPEC) Secretary General Mohammed Sanusi Barkindo on Tuesday said there was a need to restore stability and sustainability in the global economy, adding that this would materialise only based on the supply and demand figures.
Speaking to reporters on the sidelines of the India Energy Forum organised by CERAWEEK, Barkindo said India, being a leading consuming country depending on OPEC member countries for 90 per cent imports, would require active participation from the OPEC and the non OPEC members in restoring stability.
"As Minister Dharmendra Pradhan said restoring stability and sustainability is a necessity, and this is a shared responsibility. Producers and consumers have converged to restore stability. Asia is a prime destination of exports, and India is a leading consumer, with 90 per cent imports. We are satisfied with the pace of re-balance and we want to keep the momentum going," he said.
With regards to the OPEC meetings with the United States, Barkindo said the exploratory meetings yielded fruitful results, adding that the two parties recognised and acknowledged the shared responsibility maintaining stability, and are looking to further explore common interests.
"In December 2015, the U.S. lifted ban on exports, and ever since, has seen a surge in the same. This season has seen many companies file for bankruptcy as well. We, as OPEC, reached out to the U.S. through exploratory meetings in Houston for understanding the areas of common interests. These have been fruitful," he claimed.
The last three to four months, Barkindo said, saw a massive destocking, with the market structure switching to backwardation, thereby, deeming storage to be uneconomic. This, he said, would be the pathway to achieve stability and materialise equilibrium prices.
"The OPEC focusses on market demand and supply. From January to now, we have seen 100 per cent conformity to supply adjustments, coupled with positive response and robust demand growth. We want to continue to accelarate destocking, restore balance and equilibrium price of oil, which can be materialised based on supply and demand. This will be in the best interest of the global economy," he said.
Barkindo also clarified that discussions are ongoing of the OPEC with potential candidates or producers to achieve its resolve to jointly act together for the industry, which is improving through the commitment and conformity shown by member countries.
Earlier on Monday, Minister of Petroleum and Natural Gas Dharmendra Pradhan, after attending the India Energy Forum by CERAWEEK, said the world's major energy economies have appreciated India's expanding engagement with countries and its pace of reforms in the energy sector.
The Union Minister informed that more than 30 experts from India and outside country including BP, Saudi Aramco, ExxonMobil, and all major stakeholders of Indian oil companies attended the India Energy Forum which is scheduled from October 8-10 in the national capital. Pradhan added that the stakeholders discussed on India's emerging energy economy.
Pradhan further said Amin Nasser - the CEO of Saudi Aramco, a Saudi Arabian Oil Company, which opened its office in India on Sunday, has categorically spilled out that its investment in India, world's third-biggest oil consumer, will increase, adding that the constant reform to bring more transparent mechanism to Indian energy market was his only strategy. (ANI)