No specific oil price target set: OPEC's Barkindo

By Ebru Sengul and Dilara Zengin

ISTANBUL

OPEC is focusing on the post-Algiers meeting period and does not plan to target any specific oil price, according to Mohammad Barkindo, secretary general of the Organization of the Petroleum Exporting Countries (OPEC) in Istanbul on Tuesday.

Speaking at the World Energy Congress, of which Anadolu Agency is the global communication partner for 2016, Barkindo said that two years ago when oil prices crashed, he was unsure what direction OPEC was heading.

"We saw production and supply ramping up in the last two years and this cycle became the most severe. Together with my colleagues within and outside OPEC, we began consultations. It was obvious that there was a need for change in direction in order to return the market to some form of stability with a sustainable basis," Barkindo explained.

He signaled that the informal meeting of OPEC members in Algiers in September was a turning point, and noted that a convergence in the views of members, producers and consumers from the U.S., China and Asia arose.

"I think the environment changed positively and there is a global consensus. I think we have restored the broken consensus among the members and consumers," Barkindo continued.

"We have an agreement and the agreement is Algeria accord. It mandates to advance consultation particularly with non-OPEC partners and this is the opportunity in Istanbul," he said.

Barkindo said it is essential that both OPEC and non-OPEC should be at the table.

"Tomorrow we will meet for the road map. My expectation is to have a common understanding on the building blocks towards the implementation of Algiers accord."

Barkindo also said that, along Russia, OPEC is in dialogue with EU, China and India

There are no conflicts with decision that are taken in OPEC, Barkindo assured, however, he said some members such as Iran, Libya and Nigeria may have some other aspirations despite a common understanding.

Barkindo said the IMF meeting in Washington two days ago was like a 'chorus' in which the issue of stability was vital.

On the question of whether OPEC will be able to consider other countries, like Iran or Iraq, in OPEC's decisions, Barkindo said that what Algiers demonstrated to the world is that OPEC is capable of defending its collective group interest, not only on behalf of OPEC members, but also for both consumers and producers.

"Algiers given us the framework to implement the decision and now we are focusing on the post-Algiers period," he said.

Barkindo noted that there is not a specific price that is targeted for stabilizing the market.

"Because this cycle is unlike the previous five cycles that are driven by supply fundamentals. Inventories are rising to levels we have never seen before. That equilibrium price can only be achieved collectively," according to Barkindo.

Regarding the shale producers in US, Barkindo said that OPEC does not see the shale producers as competitors per se.

"Our policies are not targeted to specific group of producers. We would like to see the global economy growing. We only produce 40 percent of the market. Therefore global economy needs all producers to satisfy the rising demand that is going forward. At the end of the time we are all in the same basket," he explained.

During a discussion on Paris climate agreement, Barkin to warned that they are concerned on the discriminatory policies of governments.

Paris agreement should not be considered as a discrimination against any energy source and OPEC believes a balanced mix of sources despite we heavily rely on oil and natural gas, according to Barkindo.

OPEC members agreed at the end of September to cut oil production down to a range of 32.5 and 33 million barrels per day effective from November in the informal OPEC meeting held in Algeria's capital.