Financial Energy Review
by Ben Ndubuwa………,…
The Secretary General, of OPEC the Nigerian, Mohammad Sanusi Barkindo has said that OPEC is set to further adjust the overall oil production from 9.7 million barrels per day between May and June 2020 and 7.7 million barrels per day between July to December, 2020 and then finally 5.8 million barrels per day between January to April 2021.
OPEC Secretary General said this when OPEC delegates met with Chinese high powered delegate in an online Seminar (Webinar). The Chinese delegate included Administrator of National Energy Administration of People’s Republic of China, HE Zhang Jianhua and delegation, along with HE Wang Qun, Permanent Representative and Ambassador Plenipotentiary and Extraordinary of the Permanent Mission of the People’s Republic of China to the United Nations. Others include International Organizations in Vienna.
Barkindo told the delegates that this decisions to adjust crude oil production was taken recently by participants of the Declaration of Cooperation at the 9th and 10th (Extraordinary) OPEC and Non-OPEC Ministerial meetings held last month.
The online meeting between the OPEC delegates and their Chinese counterpart reflected on the impact of the COVID-19 pandemic on the global economy and oil market, as well as China’s domestic oil market, the rebalancing process of oil supply and demand, and China’s solutions for and optimization of the oil and gas trade system.
The meeting also reached a consensus on the importance of energy security and maintaining stability in the energy markets, strengthening collaboration between OPEC and China, as well as supporting and promoting the unique importance of multilateralism and globalization.
The OPEC Sec. General and Zhang last met in October 2019 at the 3rd High-Level Meeting of the OPEC-China Energy Dialogue, held at the OPEC Headquarters in Vienna. The meeting laid a solid foundation for future cooperation and participants were enthusiastic about the deepening dialogue between OPEC and China.
“The pandemic has provided the opportunity to further strengthen this relationship, and proven that the forces of globalization are irreversible. Rich lessons we are currently learning from the pandemic make it abundantly clear that the triumph of multilateralism and international cooperation cannot be disputed” Barkindo told the Chinese delegates at the online meeting.
Zhang stated the Webinar meeting comes at a crucial time, when the world is in the throes of the COVID-19 pandemic. However, he said China is already on the road to recovery. The country hopes to regain its former energy consumption patterns soon, which should help support the oil industry. He added China wants to work closely with OPEC to stabilize the global oil industry, ensure future energy security for the world and facilitate the energy transition.
Zhang thanked the Secretary General for OPEC’s support of China in the fight against COVID-19. Zhang stated the pandemic’s outbreak brings unprecedented changes to the oil and gas industry, and expressed that the historic decision by OPEC and non-OPEC participating countries in the Declaration of Cooperation (DoC) on production adjustments will play a positive role in stabilizing the global oil market.
Barkindo praised China’s handling and containment of the COVID-19 pandemic, stating it has saved millions of lives, and has set an example for the rest of the world, which now looks to China for guidance.
Zhang said China and OPEC share great complementarity as OPEC Member Countries are the largest exporters of petroleum to China and China the world’s biggest importer of oil. “The two parties should work together both today and tomorrow to deepen their dialogue” he said, adding that strong collaboration is not only essential for the interests of both, but also for the global economy.
Zhang clarified three elements that would help the global economy get back on track post-COVID-19: Optimizing the trade system to consolidate and expand oil trade; enhancing communication to keep the energy market stable; and strengthening pragmatic cooperation to extend the industrial chain, including oil products, storage and transportation. Ambassador Wang stated that a return of stability to energy markets and the world economy is urgently needed on the basis of international market rules, and called for international efforts to minimize the impacts of politicizing factors in this regard.
The meeting was the 11th in a series of OPEC Secretariat briefings with key stakeholders centering on COVID-19-related impacts on the global economy and oil market.
