OPEC boss sees a re-balanced oil market emerging

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OPEC’s Secretary-General Mohammad Barkindo has said that oil-producing nations are moving closer toward ending a global glut and re-balancing the crude market, and OPEC will decide next month whether to extend its cuts in output beyond June, Bloomberg reports.

The Organization of Petroleum Exporting Countries and other major producers are committed to reducing oil stockpiles, and all countries participating in a six-month deal to pare output are committed to restoring the market’s stability, Barkindo said at a conference in Abu Dhabi. OPEC will decide at a meeting on May 25 whether to prolong the cuts it pledged to make starting in January, he said. “We are optimistic the policy measures have already placed us on the path of recovery,” Barkindo said in a speech. “Our collective action will continue to prove effective.”

It would however be premature to talk about the participation of OPEC members Iran, Nigeria and Libya in any extension of output limits, Barkindo and United Arab Emirates Energy Minister Suhail Al Mazrouei said at the conference. OPEC exempted Nigeria and Libya from cutting production, due to their internal conflicts. The group agreed to let Iran pump an additional 90,000 barrels a day to reach output of about 3.8 million as the country recovers from sanctions.