OPEC’s Barkindo says Algerian deal already abates oil volatility

MOSCOW, Oct 28 (PRIME) -- The Algerian agreement of OPEC has already reduced the oil price volatility and has had a positive effect on the markets, OPEC Secretary General Mohammad Barkindo said on Thursday at an OPEC meeting.

“Already this decision has reversed the market trend positively and reduced relative volatility,” Barkindo said.

“While we have seen the rebalancing process already underway, the physical market remains in surplus. A large stock overhang continues to persist. And today’s excess stocks of around 300 million barrels calls for our collective and urgent action.”

OPEC agreed to limit daily oil output at 32.5–33.0 million barrels at an informal meeting in Algeria in September. The ceilings for each country will be defined at the organization’s next official meeting on November 30 in Vienna. President Vladimir Putin said that Russia is ready to join OPEC in a freeze of oil production, if an agreement is reached.

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