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OPEC: Quick Saudi Response Was Key to Curbing Price Volatility

OPEC: Quick Saudi Response Was Key to Curbing Price Volatility

Friday, 27 September, 2019 - 08:00
OPEC Secretary General Mohammed Barkindo and Minister of Energy of the Republic of Kazakhstan Kanat Bozumbayev attend a session of Kazakhstan Energy Week in Nur-Sultan, Kazakstan September 26, 2019. REUTERS/Mariya Gordeyeva

Saudi Arabia's quick moves to restore output have been crucial to curbing oil price volatility after the global oil market had been shaken up following the attacks on two 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 United States and China.

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

Saudi Arabia has restored its oil production capacity to 11.3 million barrels per day, maintaining a faster than expected recovery after the Sept. 14 attacks on Aramco’s two oil facilities.

The attacks had shut down 5.7 million bpd of production, or around 50 percent of Aramco’s output.

Meanwhile, Bloomberg said that oil tanker costs are surging after the US slapped sanctions on Chinese companies it accused of hauling Iranian crude.

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