OPEC Sec-Gen Urges Non-OPEC To Clear Oil Stocks Overhang

Following the recent drop in oil prices, non-OPEC producers have been urged to help clear the overhang of oil stocks in the market.

The secretary-general of the Organization of Petroleum Exporting Countries, OPEC,Abdullah al-Badri on Monday, January 25, said OPEC and non-OPEC oil producers need to jointly tackle global stocks overhang to enable oil prices recover with investments in new fields, OPEC secretary-general.

Speaking at a conference in London, al-Badri said: “It is vital the market addresses the issue of the stock overhang. As you can see from previous cycles, once this overhang starts falling, then prices start to rise.”

“Given how this developed, it should be viewed as something OPEC and non-OPEC tackle together. Yes, OPEC provided some of the additional supply last year, but the majority of this has come from non-OPEC countries,” he noted.

He said it was crucial that major producers came up with a solution, as the market needed to see inventories come down to levels that would allow prices to recover and encourage investments.

He added:“The current environment is putting this future at risk. At current price levels, it is clear that not all of the necessary future investment is viable.”