Barkindo invites major oil producers to join the Charter of Cooperation

Charter of Cooperation

OPEC Secretary General Mohammed Sanusi Barkindo invited major oil producers to join the “Charter of Cooperation”, which includes 24 producing nations, both OPEC members and non-members.

During his intervention in an event held in Sochi, Russia, the senior official said that greater cooperation is the best recipe for overcoming intensified uncertainties and heightened volatility in the global oil market.

Barkindo explained that the OPEC+ alliance (formed by OPEC members and 10 non-OPEC producers) “has served the interests of producers, consumers, and the global economy” over the past three years.

Balancing the market

The Charter of Cooperation “is a platform to facilitate dialogue among the Participating Countries, aiming to promote oil market stability; cooperation in technology and other areas, for the benefit of oil producers, consumers, investors, and the global economy,” he said.

Additionally, he indicated that this instrument is a means of enabling the long-term use of oil as a key component in the evolving global energy mix and added it is also meant to improve the environmental and efficiency credentials of oil. This initiative is part of the search for strategies and technologies that propitiate progress within the oil industry.

“Therefore, further and more intensified cooperation is the best prescription to treat volatility. For this reason, participation in the ‘Charter’ is voluntary and open to all producing countries. I would like to extend the hand of friendship to all 97 oil producing countries and invite them to join the ‘Charter of Cooperation’ as we seek to build a better world,” Barkindo said at the 16th annual meeting of the Valdai Discussion Club in Sochi, Russia.

Barkindo’s speech was published on OPEC’s website. These remarks were made during the session ‘Global Energy Markets: How to Avoid Instability and Ensure a Balance of Interests.’

Searching for Alliances

This is not the first time that the OPEC Secretary General invites oil producers not participating in the oil output cut to join the dialogue on ways of stabilizing the market.

In this sense, Barkindo urged U.S. President Donald Trump to join the dialogue to ensure the balance of the global oil market. In line with this call made in February, the OPEC Secretary acknowledged that, as one of the main oil producers and consumers worldwide, the United States has strategic participation in global supply and demand.

However, Washington is not interested in market management policies. President Trump has taken to Twitter several times to accuse the OPEC of manipulating the prices or keeping them “artificially high.”

Furthermore, other large oil producers like Canada, Brazil, and Norway have not joined the agreement or expressed an interest in joining the Charter of Cooperation.

Similarly, growing oil supply from the U.S., Brazil, and Norway, among others, has undermined OPEC efforts to increase oil prices.

Russia’s role

In his speech, Barkindo stressed the importance of the cooperation agreements between Russia and the OPEC.

“We are currently in the midst of a historic era for OPEC-Russian relations. Our partnership has evolved into a permanent, transformative force-for-good in the energy market; one that has had a profoundly positive effect on the industry and the global economy.”

“The OPEC-Russian relationship is one based on friendship and mutual respect,” he stated.

For more information, check Energía16

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