Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Haitham al-Ghais said that OPEC is holding active talks with several nations eager to join the OPEC+ Charter of Cooperation following the recent accession of Brazil.
The names of these countries will be announced after the ongoing consultations, the OPEC chief explained in statements to the Emirates News Agency (WAM).
The Charter of Cooperation provides a platform to facilitate dialogue and exchange views regarding conditions and developments in the global oil and energy markets to contribute to a secure energy supply and lasting stability for the benefit of producers, consumers, investors, and the global economy.
Speaking on the sidelines of the World Government Summit, he said that the Charter emphasizes the importance of several pivotal issues, such as enhancing energy security, eliminating energy poverty, and supporting the growth of the global economy.
Ghais noted that oil-producing countries participating in the Charter continue to regularly consult and exchange views regarding developments in global oil markets to discuss the best ways to achieve the most crucial goal of the Charter of Cooperation.
- Intensify efforts
Regarding any future changes in the oil production of OPEC member states, Ghais said that the continuous successes of the Declaration of Cooperation (DoC) have motivated the participating countries to continue intensifying their efforts and cooperation to support market stability.
He highlighted OPEC+ members' recent agreement to extend their voluntary oil production cuts until the end of 2024.
Ghais continued that some of these countries, specifically the Kingdom of Saudi Arabia, the Russian Federation, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, have declared additional voluntary production cuts that are in effect until the end of March of this year to provide further support to global oil markets and ensure stability.
He also highlighted the Joint Ministerial Monitoring Committee's (JMMC) commendation in its meeting in February of the compliance of OPEC and non-OPEC member countries with the crude production quota under the Declaration of Cooperation (DoC).
He referred to the high commitment to production cuts and stressed the importance of adhering to them and the countries' readiness to participate in the agreement to take action.
The Secretary-General added that the JMMC is a committee formed by the countries participating in the Charter.
It monitors compliance with the cuts, supervises the developments and conditions in global oil markets, and provides recommendations on the measures that must be taken to support their stability periodically.
He added that OPEC always seeks stability in the global oil market by studying the fundamentals and its variables, such as levels of demand, supply, investments, and other factors.
- Geopolitical variables
Ghais said that global oil markets are constantly affected by various factors, some outside of OPEC's control and others the organization can influence by intensifying efforts and cooperation among member states to support market stability.
OPEC relies on its awareness of market fundamentals, and despite global geopolitical tensions, it always seeks to supply the world with oil safely and reliably, said Ghais.
He pointed out that the oil markets report for January 2024 expected the growth in global oil demand would reach more than 2 million barrels per day (mb/d), divided into about 300,000 bpd in OECD countries and about one mb/d in other countries.
In 1Q-24, oil demand is expected to grow by 2.0 mb/d y-o-y.
According to the report, total world oil demand is anticipated to reach 104.4 mb/d in 2024, bolstered by strong air travel demand and healthy road mobility.
He added that initial estimates for 2025 indicate that the expected growth in global demand for oil will be about 1.8 mb/d, and the OECD states increase was estimated at 100,000 bpd and about 1.7 mb/d abroad.
Regarding the COP28 declaration regarding the gradual transformation in the energy sector, he said that OPEC believes that the transformation of energy systems is an important issue, stressing that it was necessary to deal with it realistically, fairly, and comprehensively.
Ghais called for adopting an approach that facilitates finding different, comprehensive, and responsible solutions to such a sensitive issue.
According to the Sec-Gen, the goal is to reduce emissions that harm the planet and the environment regardless of the energy source used.