Last November, OPEC agreed at a meeting to reduce output by 1.2 million barrels a day to 32.5 million barrels a day for the first time since 2008.
Speaking to reporters on the sidelines of a Doha Forum session on ‘Global Trends and Challenges for Economic Development and Investment (Oil and Energy Issues)’, Al Sada said the upcoming OPEC meeting on 25 May will present an opportunity to examine the degree of commitment to reduction.
It would also discuss the results of the decision taken and also discuss the scenarios to be implemented in the coming months taking into account the annual behavior of energy markets in those months.
Shale oil impact
On the impact of shale oil on oil markets, Al Sada said that the production of shale oil amounted to about 2.5 million barrels and those interested in the oil sector have fully understood the problem is not in shale oil per se but the rate of market entry, which has been absorbed. He said he is expecting an increase of the rate of the entry of shale oil to the market in the coming months.
On the levels of the current oil surplus, Al Sada said shipped surplus fell very significantly, but the surplus in the OECD, which started to show signs of decline, was more than 300 million barrels and is now at about 280 million barrels. He expected a further reduction in the surplus close to the average rate of the past five years, adding that the surplus of 280 million barrels is the world’s production for only three days.