OPEC’s Barkindo: High compliance to OPEC deal already having a positive impact on the market

 Mohammad Barkindo, OPEC Secretary General delivered introductory remarks at the 7th IEA-IEF-OPEC Symposium on Energy Outlooks held today.

Key Quotes:

“The latest market developments that will be shared here today reflect the strong level of commitment for expediting the market rebalancing process.”

“These concerted efforts by the both OPEC and non-OPEC producers are already having a positive impact on the market as we see the onset of a more bullish sentiment emerging in the market.”

“Prices have reversed their downward trend with the OPEC Reference Basket recovering to the highest levels since July 2015 to stand above $50 per barrel.”

“The market structure is showing the first signs of a transition from a contango into backwardation, which could occur in the second half of this year.”

“Crude futures have rallied sharply to their highest levels in 18 months, and money mangers’ bets on prices have reached new highs, providing an additional boost to ongoing gains in prices.”

“Additionally, we have seen rising economic output, improved labour markets and increasing inflation in some key advanced economies.”

“This is all good news for the industry, and gives us a confirmation that we are moving in the right direction towards achieving our common goal of restoring market stability and reviving much needed investment.”

Full speech here