OPEC’s secretary general told CNBC which oil cost volatility is usually due to anxiety ahead of the 14-member oil producer group’s next meeting in Vienna in December.
“What is usually happening at the moment, in our opinion, is usually the normal volatility which comes inside the run up to our conferences. As you know, we reconvene in Vienna on the 6th along with 7th of December … along with This specific period between currently along with December is usually a period of anxiety for all stakeholders,” Mohammed Barkindo told CNBC’s “Squawk Box Europe” at the ADIPEC conference in Abu Dhabi Wednesday.
He said the organization of oil producers, whose defacto leader is usually Saudi Arabia, remained focused on stabilizing oil markets, which have seen supply along with demand out of kilter for several years.
“We remain very focused on our principle objectives which we have made clear inside the most transparent manner you can think of,” he said.
“We remain focused jointly with our markets to restore stability to This specific market along with we have registered some modest, I may say, achievements in which regard.”
Oil prices slumped to their lowest level in more than eight months early on Wednesday, extending losses through a 7 percent plunge inside the previous session. However, following the comments through oil market leaders, prices rallied. International benchmark Brent crude traded at around $66.45 at 9:30 a.m. London time, up almost 1.5 percent, while U.S. West Texas Intermediate (WTI) stood at $56.21, up almost 1 percent.
The recent falls had come amid heightened fears of a slowdown in global demand, with OPEC downwardly revising its projections for 2019. The influential oil cartel currently expects demand to grow by around 1.29 million barrels per day (bpd) next year, approximately 70,000 bpd lower than last month’s forecast.