Suhail Al Mazrouei, the President of Organisation of Petroleum Exporting Countries, says OPEC and non-OPEC countries are working on long-term pact that can extend their control over world crude supplies to ensure future oil price stability.
Al Mazrouei, who is also the Minister of Energy and Industry, United Arab Emirates said this at the opening of the 7th OPEC International Seminar on Wednesday in Vienna, Austria which has “Petroleum- Cooperation for Sustainable Future” as its theme.
The OPEC president said a lasting agreement by both parties was in the interest of oil producers and consumers.
OPEC states, Russia and several other non-OPEC producers agreed to cut supplies from January 2017 to lift oil prices that plunged from above 110 dollars per barrel in 2014 to below 30 dollars in 2016.
A deal to extend the deal, which boosted prices to around 70 dollars now, was agreed in November, 2017 but output cuts agreement would end in December 2018.
He said: “It is important to remember what happened to investment levels in the last few years.
“We must not be shortsighted and ignore the risk of future period of volatility. In addition, we should also see tremendous value in institutionalising cooperation.
“Both myself and the Secretary-General of OPEC, Mohammad Barkindo, are working very hard to put together something in front of the ministers before the end of the evening, that hopefully will make this partnership a long lasting partnership.
“Let me stress that OPEC’s commitment to market stability is unwavering. We recognise that cooperation is key ingredient for sustainable global energy future for both producers and consumers.”
Barkindo had earlier said that enhanced cooperation among oil producers was key to positive future for the oil and energy industry.
He said that the importance of cooperation could be seen in the success of the “Declaration of Cooperation”, between 24 OPEC and non-OPEC countries to cut oil production, thereby shoring up oil prices”.
He said that without the agreement, the oil market would have collapsed and that was why it was important for oil producing nations to come together.
He said: “The importance of this sustainable future, with market stability at the core, will no doubt be apparent at the seminar, as we tackle issues such as global energy futures, investments and global oil market balance metrics.”
Meanwhile, the Austrian Minister of Integration and Foreign Affairs, Karin Kneissl, said cooperation among producing countries would keep the planet habitable for future generations.
The 7th OPEC International Seminar will take place from June 20 to June 21 in Vienna.
High-ranking representatives from government, business, science and academia from OPEC and non-OPEC member countries are expected to examine and discuss the future of global energy.