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Active talks with several nations eager to join Charter of Cooperation: OPEC SG

ABU DHABI: Haitham Al Ghais, Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), said that OPEC is in active talks with several nations eager to join the OPEC+ Charter of Cooperation, following the recent accession of the Republic of Brazil.

According to a report on Monday, the names of these countries will be announced after the completion of the ongoing consultations, the OPEC chief explained in statements to the Emirates News Agency (WAM).

“By facilitating dialogue and joint efforts in areas like technology, the Charter of Cooperation aims to stabilise oil markets and benefit all industry stakeholders, including oil-producing and consuming nations.”

The Charter, he continued, provides a platform to facilitate dialogue and exchange views regarding conditions and developments in the global oil and energy markets. The goal is to contribute to a secure energy supply and lasting stability for the benefit of producers, consumers, investors and the global economy.

Regarding any future changes in oil production for OPEC member states, Al Ghais said that the continuous successes of the Declaration of Cooperation (DoC) have motivated the participating countries to continue intensifying their efforts and cooperation to support market stability.

He, in this regard, highlighted OPEC+ members’ recent agreement to extend their voluntary oil production cuts until the end of 2024. In addition, he continued, some of these countries, specifically the Kingdom of Saudi Arabia, the Russian Federation, Iraq, the UAE, the State of Kuwait, Kazakhstan, Algeria and the Sultanate of Oman, have declared additional voluntary production cuts that are in effect until the end of March of this year to provide further support to global oil markets and ensure stability.

He also highlighted the Joint Ministerial Monitoring Committee (JMMC) ‘s commendation in its meeting in February of the compliance of OPEC and non-OPEC member countries with the crude production quota under the Declaration of Cooperation (DoC).

Regarding the role of the United Arab Emirates in supporting OPEC to achieve price stability, Al Ghais said that since joining the organisation, the UAE has provided full support to the organisation and its goals and efforts to support the stability of global oil markets for the benefit of all producers, consumers and investors.

“This reflects the UAE’s leading and responsible role in the energy industry in general and its distinguished global position as a reliable producer and exporter of oil in particular. Therefore, the role played by the UAE, along with the rest of the member states of the organisation is of great importance and has many positive consequences, especially for the growth of the global economy,” he noted,

Regarding the impact of the geopolitical conditions that the world is witnessing on the global energy scene during the current year 2024, Al Ghais said OPEC continues to play its vital role by intensifying efforts and cooperation between member states to support market stability by providing them with reliable and regular supplies. Relying on its understanding of market fundamentals and despite the geopolitical tensions around the world, OPEC, he continued, always seeks through its member states to supply the world with oil in a safe, reliable and uninterrupted manner.

On the global oil demand growth forecast for 2024, he highlighted the OPEC January 2024 report, where the world organisation said that the demand forecast remains unchanged at 2.2 mb/d, with the OECD growing by around 0.3 mb/d and the non-OECD by about 2.0 mb/d.

In 1Q-24, oil demand is expected to grow by 2.0 mb/d y-o-y. Total world oil demand is anticipated to reach 104.4 mb/d in 2024, bolstered by strong air travel demand and healthy road mobility, according to the report.