HOUSTON - The Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC oil producers reaffirmed their commitment to oil production cut reached last year.
To deal with the oil glut and help stabilize oil prices, OPEC and non-OPEC nations, including Russia and 10 other countries, agreed in November 2016 to trim production by 1.8 million barrels per day (bpd), which has stabilized oil prices above 50 U.S. dollars per barrel. The accord became effective on Jan. 1, 2017 and runs until July of this year.
Saudi Arabia Oil Minister Khalid Al-Falih told the CERAWeek conference, an annual international gathering of energy industry leaders, experts, government officials and policy makers, that he and his counterparts from other countries were all committed to the pact.
"All of us realize that such an expanded network of producers with a larger share of global production is the only way to achieve a constructive, stable market for all," he said.
Al-Falih noted that the timing of OPEC cutting production to stabilize oil prices without the contribution of the non-OPEC nations are gone.
Saudi Arabia would not bear the burden of the oil production cuts and all the 24 partners in the accord would have to pull their weight, he added.
As for the U.S. shale production, he said the comeback of shale to a certain degree is not only welcome and acceptable but also necessary for demand growth. (Xinhua)