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Major oil producers may consider additional steps to eliminate oversupply in the global oil market if a deal to freeze output holds firm, news agencies reported on Monday, citing comments from OPEC’s secretary-general Abdalla Al-Badri.
Speaking during the IHS CERAWeek conference in Houston, Al-Badri said that all producers must first cap output levels for at least three or four months before other measures could be explored.
"The first step is to freeze the production. Maybe if this is successful we can take other steps in the future," he said. "I think this is a first step to see what we can achieve.”
Al-Badri said the cartel is willing to work with non-member producers to tackle a supply glut that has been keeping oil prices under pressure. He added that the cartel has already held talks with Brazil, China, Oman and Mexico on a possible production freeze.
Last week, Saudi Arabia, Russia, Venezuela and Qatar had agreed to freeze production at January levels. Iran has voiced support for the move, but has not yet committed to any deal.
In addition, OPEC’s chief expressed some concern over the current state of the oil market, as prices have declined by more than 70 percent over the last 18 months, and suggested that the current trend is different from previous boom-boost cycles.
"If prices will go up in 2017 or 2018, the price rally will be capped by U.S. shale oil. That's what is different this time," he said, adding that he was willing to discuss the U.S. officials about the situation.
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