March 6, 2018
OPEC Secretary General Mohammed Barkindo asserted that the oil cartel’s ongoing efforts to limit global crude production, along with 11 non-OPEC countries, could serve as a long-term strategy to reduce boom-and-bust oil prices, here at the “Oil Man’s Davos,” CERAWeek in Houston on March 5, World Oil reports.
“Barkindo expressed interests in not only extending production cuts wrought by the Declaration of Cooperation—now referred to by some as the ‘Vienna Alliance’—but in expanding the agreement to as many oil producing nations as possible.
“The deal originally was agreed to for six months in December 2016, but was reconsidered and prolonged several times during 2017, and was most recently expanded to cover the entirety of 2018. It has amounted to an estimated 1.8-MMbopd output reduction.
“The secretary general described the agreement as an act to ‘literally rescue the industry from collapse,’ remarking that its state ‘is as solid as the Rock of Gibraltar.'”