OPEC says it has not failed India, provided mkt stability

Lloyd Doyle
October 17, 2018

Brent crude LCOc1 last week reached United States dollars 86.74, the highest since 2014.

The oil market is adequately supplied and balanced but this situation is fragile said Mohammad Sansui Barkindo, Secretary General, Organisation of Petroleum Exporting Companies.

"Countries that are holding spare capacity are now shrinking because there has been less investment in exploration", Barkindo said on the sidelines of the IHS CERA conference.

Reuters reported that OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said, suggesting producers are in no rush to expand a June agreement that raises output.


"Our view is that the market is now adequately supplied and well balanced".

Barkindo said the oil markets were now adequately supplied and balanced, but cautioned against a potential imbalance in 2019 due to higher supply. "For 2019, there is the potential for an imbalance, due to larger growth in supply", he said. "All of these impact on the relative stability that we have been able to achieve after the long four years of this downturn that came with a hefty crunch in terms of investible in our industry", he said.

OPEC's report said its own production rose by 132,000 barrels per day in September to 32.76 million bpd, the highest this year, although producers have yet to increase supply enough to reach 100 percent compliance.

Retail fuel prices in India, the world's third biggest oil consumer and importer, recently touched record levels due to high oil prices and a weakening rupee, leading to protests across the country.

Other reports by Iphone Fresh

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