Abu Dhabi- UAE Governor for the Organization of the Petroleum Exporting Countries (OPEC) Ahmed Mohammed al-Kaabi, who is also the assistant under-secretary for the oil and gas industry and mineral resources at the Ministry of Energy, said that crude oil prices have started to recover, highlighting the positive effects in the global market during the current year.
In a statement to the Emirates News Agency, WAM, Kaabi stated that oil markets are currently steady, supported by positive indicators that show the desire and commitment of oil-producing countries to reach an agreement to reduce their production, which aims to re-balance global oil markets.
He added that speculators are attracted to buying future contracts in global oil markets, recently highlighting the large buying positions in crude oil that contributed to the rise of prices at their highest levels in three years.
Kaabi stressed that the activity by traders is considered among the most efficient tools for market movement and for preserving stability.
He noted that the enthusiasm of traders to buy oil indicates positive market sentiments that lead to a price recovery.
He also said that the rise in the buying of contracts at record levels shows that speculators are trying to increase global prices.
OPEC pledged to reduce production by 1.2 million barrels per day from January 1, the first reduction of oil production in eight years, to prop up prices and eliminate oversupply.
It reached a 90% compliance rate in the first month of the agreement.
Moreover, Kaabi explained that global oil market analysts are closely monitoring the producers’ commitment to implement the agreement and comply with their pledges on reducing production, US stock market values and the change in oil demand during the coming months, especially with the Asian refining maintenance period between April and June 2017, in addition to the levels of United States crude oil exports.