Osama Soliman from Vienna.
OPEC Secretary-General Mohammed Barkindo said that the current period represents a historic era for the relationship between OPEC and Russia, pointing to the development of the partnership and turn it into a permanent force in the interest of the energy market, saying that this will have a profound positive impact on industry and the global economy.
An OPEC report said that the "ice-breaking" meeting held by Crown Prince Mohammed bin Salman with Russian President on the sidelines of the Hangzhou G20 summit in 2016 was one of the most important historical and articular events in the history of industry, which led to the Cooperation, 'where this courageous step played an enormous role in the successes of subsequent producers.
The "declaration of cooperation" between OPEC member states led by Saudi Arabia and 10 independents led by Russia - which came into force in January 2017 - has contributed to the revitalization of the wealth of the global oil industry.
He stressed that the challenges facing the oil industry are complex in nature, where no single stakeholder has all the answers, explaining that working together can overcome the obstacles faced by the industry.
He pointed out that the producer alliance succeeded in lifting the sector from the severe recession, which hit the industry between 2014 and 2016, where the collapse in commodity prices pushed many developing countries to the brink of recession, pointing out that the oil industry was in dire straits as the market fell into a state of a sharp imbalance when the massive increase in global supplies of 5.5 million barrels per day exceeded the increase in oil demand of 4.1 million barrels per day by July 2016. The accumulation rate of trade inventories in the OECD reached a record level of about 403 million barrels Higher than average Inventories in five years, and the price of OPEC's reference basket fell 80 percent between June 2014 and January 2016.
At that time, nearly $ 1 trillion in investments were frozen or halted, record bankruptcies were recorded in the oil industry, and nearly half a million jobs were lost in the global oil and gas industry.
The report said that OPEC and Russia recognized the magnitude of the crisis facing the industry, and agreed on the need for a decisive response to the crisis, where the "Declaration of Cooperation" was signed on December 10, 2016, and contributed to improving the health of the global economy in 2017 and 2018.
He added that the producers decided to continue to build on this cooperation through the "Charter of Cooperation", which was ratified at the sixth ministerial meeting of OPEC and independents on July 2, 2019, noting that the "Charter" is a platform to facilitate dialogue between the participating countries In order to promote market stability and promote cooperation in technology and other fields, for the benefit of oil producers, consumers, investors, and the global economy.
The report expected that the "Charter" will strengthen strategies and techniques to advance the global oil industry, pointing to the choice of 24 countries participating in the Charter through cooperation, dialogue, transparency, and openness, saying that the "Charter" crystallizes these intentions and provide producers with a comprehensive framework.
He pointed out that the "Charter" leads to face the challenges strongly in the future, pointing out that the oil industry is often vulnerable to external shocks, which exceed the ability of any single stakeholder to control the situation, especially geopolitical risks, trade tensions, monetary policy, natural disasters, and other factors.
He pointed out that participation in the "Charter" was voluntary and open to all producing countries, adding that the hand of friendship extended to all 97 oil-producing countries, where OPEC invites them to join the "Charter of Cooperation" in its quest to build a better world.
He clarify that the "Charter for Cooperation" embodies the concept of "multi-stakeholder" in the field of energy, which includes a broad and comprehensive dialogue between producers, consumers, investors and other relevant counterparts in the global economy, stressing that recent events in the energy industry revealed the fact that unexpected developments It can have a significant impact on market fundamentals, underlining the need for continued cooperation.
On the other hand, OPEC stressed the importance of cooperation with the Gas Exporting Countries Forum, where it recently signed a memorandum of understanding to promote cooperation in the field of research and exchange of best practices, pointing to the assurance of OPEC Secretary-General Mohammed Barkindo that the prevailing consensus is that oil and gas Together, they will remain the preferred fuel for the foreseeable future, pointing out that most forecasts confirm that oil and gas will continue to control the energy mix.
According to a recent report of the Organization of Petroleum Exporting Countries (OPEC), the Memorandum of Understanding aims to establish and strengthen cooperation to carry out activities and exchange experiences, views, information and best practices in areas of common interest. Covers short and long term.
The report stressed the importance of supporting energy initiatives and developments aimed at achieving sustainability along with environmental and social responsibility and other areas and issues involving common interests and concerns.
He pointed out that OPEC is an intergovernmental organization with successful experience for 60 years and focuses on coordinating and unifying the oil policies of its member states and ensuring the stability of markets in order to ensure efficiency and regular supply of oil to consumers and to achieve a stable income for producers and a fair return on capital for those who invest in Oil industry.
Oil prices rose nearly 1 percent at the end of last week after an increase in jobs in the United States helped to allay some financial markets concerns about a global economic slowdown that could undermine demand for crude, but oil fell more than 5 percent over the course of the week in the second a week in a row of losses.
According to Reuters Brent crude futures rose 66 cents, or 1.14 percent, to settle at $ 58.37 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were up 36 cents, or 0.7 percent, at $ 52.81 a barrel.
Over the course of the week, Brent contracts fell 5.7 percent, the biggest weekly decline since July, and US crude ended the week on a loss of 5.5 percent, which is also the largest since July.
US energy companies have cut the number of oil rigs in operation for the seventh week in a row, while producers continue to implement plans to cut spending on new drilling work this year.
In its closely watched weekly report, Baker Hughes Energy Services reported that the number of active oil rigs in the United States fell by three in the week ending October 4, bringing the total to 710, the lowest since May 2017.
In the same week a year ago, 861 rigs were in operation, and the number of active oil rigs, a preliminary indicator of future production, declined over the past 10 months as independent exploration and production companies cut spending on new drilling, while focusing more on profit growth instead of increased production.
The decline in the number of rigs helped to reduce US crude oil production in July to 11.81 million barrels per day, the third monthly decline, from a record high of 12.12 million barrels per day in April.
On the other hand, the number of active natural gas rigs in the United States fell to 144, the lowest level since January 2017.
The US Energy Information Administration reported that US crude inventories rose last week as refiners cut production, while gasoline and distillate inventories fell.
Crude stocks increased 3.1 million barrels for the week ending 27 September, while analysts expected to rise by 1.6 million barrels and crude stocks fell in the delivery point in Cushing, Oklahoma State 201 thousand barrels.
Refined crude consumption fell 496 thousand barrels per day, and the rate of operation of refineries fell 3.4 percentage points, while gasoline stocks fell 228 thousand barrels, while analysts expected to increase 449 thousand barrels.
Distillate inventories, which include diesel and heating oil, fell 2.4 percent, against expectations of a 1.8 million barrel decline, and US net crude oil imports rose 29,000 barrels a day of the week.