OPEC Secretary General Expects Global Oil Inventories to Fall in Q2

OPEC expects to see global oil inventories fall by the second quarter of this year in response to producers’ agreement to cut output, OPEC Secretary-General Mohammed Barkindo said on Thursday.

Speaking to reporters on the sidelines of a conference, Barkindo said OPEC had no specific oil price objective in mind, but wanted a price that would sustain investment in the oil industry.

Asked whether there was a risk that Iraq would not keep to its agreement to reduce output, Barkindo said he had met with Iraqi officials and saw no reason to doubt that Iraq would implement its cuts fully.

He also said that in general, he was confident that producers were committed to the deal between OPEC and non-OPEC states. It would be premature to say whether the deal will need to be extended beyond six months, he said.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza