Did not expect a renewed oil-price collapse as seen in the second quarter, says OPEC secretary

OPEC’s secretary general said on Monday OPEC+ producers did not expect a renewed oil-price collapse as seen in the second quarter, and said producers in the OPEC+ alliance would continue to “stay the course” in balancing the market.

OPEC’s Mohammad Barkindo was giving a speech at the virtual India Energy Forum by CERAWeek.OPEC+ made a record supply cut from May, which boosted prices from historic lows. Brent is up from a 21-year low below $16 in April.

The OPEC+ alliance said last week that it will ensure the prices do not plunge steeply again when it meets to set policy at the end of November.

“I want to assure you that the OPEC, non-OPEC partnership will continue to do what it knows best, by ensuring that we don’t relapse into this almost historic plunge that we saw,” Mohammad Barkindo said.

OPEC+ is an alliance of crude producers who undertake corrections in supply in the oil markets since 2017 that undertakes production restrictions to help resuscitate a flailing market.