OPEC says quick Saudi response was key to curbing volatility

OPEC says quick Saudi response was key to curbing volatility
OPEC Secretary General Mohammed Barkindo said an extraordinary meeting of OPEC members and fellow oil exporters was not on the cards. (Reuters)
Updated 26 September 2019

OPEC says quick Saudi response was key to curbing volatility

OPEC says quick Saudi response was key to curbing volatility
  • Oil markets remain focused on outcome of US-China talks

NUR-SULTAN: Saudi Arabia’s quick moves to restore output have been crucial in curbing oil price volatility after the global market had been shaken up following the attacks on some of its facilities, OPEC Secretary General Mohammed Barkindo said on Thursday.

Barkindo told an energy conference in Kazakhstan that an extraordinary meeting of OPEC members and fellow oil exporters was not on the cards as Saudi Arabia has restored the bulk of its supply and the incident was “behind us.”

The group remains focused on maintaining oil price stability and “will do whatever it takes to insulate oil from politics,” he said.

Barkindo also said OPEC expected robust long-term growth in oil demand, especially from developing nations.

Speaking about shorter-term risks, he said the oil market was focusing on the outcome of the trade talks between the US and China.

Overall, while global economic growth figures indicated deceleration, they were not “worrisome” and indicated no signs of recession, Barkindo said. 

Separately, recent attacks on Saudi Arabia’s oil facilities are unlikely to have a major immediate impact on the supply of liquefied natural gas, a senior official at the International Energy Agency (IEA) said at a press briefing on Thursday.

But if the security situation worsens in the Middle East, in particular in the Strait of Hormuz, then it may hit LNG supply from Qatar and the UAE, said Keisuke Sadamori, director of IEA’S Energy Markets and Security division.

The share of Qatar and UAE in global trade is about one quarter, he said.

“We hope that the Middle East situation will maintain stability so that there will be no disruptions,” he added.

Recent attacks on oil and fuel tankers in the waters near the strait and Iran’s threats to close the strait has caused concerns about energy supply.