Oil Market Will Recover Before December-OPEC

The Organization of Petroleum Exporting Countries, OPEC, has expressed hope of a better trading experience and market recovery in the 2021 fiscal period.

Speaking at the Atlantic Council Global Energy Forum, the Secretary General, OPEC, Mohammad Barkindo expressed optimism that the oil market would recover this year from the slump in demand as occasioned by the coronavirus pandemic.

He explained that the OPEC and its allies, the OPEC+ through its monthly meetings would work to control the re-emerging of market imbalance.

“We all agree that the recovery is fragile, there are still more uncertainties, but we are cautiously optimistic that the recovery will materialise this year,” he said.

Oil prices have rallied to an 11-month high this month, helped by a January 5 decision by most members of OPEC+ to hold production steady in February and a pledge by Saudi Arabia to voluntarily cut output.

Similarly, the energy Minister for OPEC member the United Arab Emirates, Suhail Al-Mazrouei also confirmed a possibility of recovery in the global oil market recovery this year.

“This year the way we see it is a year of recovery, whether it’s going to be the end of the year where we are supposed to reach the balance or the beginning of 2022,” he said.

Al-Mazrouei said there would be improved oil demand in China and India as more countries begin their coronavirus vaccination campaigns.