Balanced and stable oil market is essential for post-pandemic recovery; OPEC Dialogue

By Rahul Vaimal, Associate Editor
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The seventh high-level meeting of the OPEC-Russia Energy Dialogue, hosted by OPEC confirmed that a balanced and stable oil market is a prerequisite for post-pandemic recovery, sufficient investment and future prosperity for consumers and producers alike.

The meeting was co-chaired by the OPEC Secretary-General, Mohammad Sanusi Barkindo and the Russian Federation’s Energy Minister, Alexander Novak.

The discussion highlighted that the OPEC-Russia Energy Dialogue continues to play a key role in improving and strengthening the relationship between the two parties.

The Secretary-General of OPEC stressed that the relationship with the Russian Federation “has evolved into a permanent, transformative force-for-good in the energy market; one that has had a profoundly positive effect on the industry and the global economy.”

The high importance of the Russian Federation’s dialogue with OPEC was noted by Novak. He also stressed the fundamental role of the Secretariat in the success of the implementation of the Declaration of Cooperation (DoC).

Both parties emphasized the strategic importance of the relationship between OPEC and the Russian Federation, not only at the level of bilateral dialogue but also through the DoC and the Charter of Cooperation (CoC). This helped counter the unprecedented shock triggered by the COVID-19 pandemic on the oil markets and set them on a path to sustainable recovery.

The parties also noted the high compliance with these production arrangements, the encouraging momentum they brought to the oil market and the positive effects affecting the global economy. However, both parties agreed that difficulties and uncertainty exist, and noted that they are committed to re-balance the economy and achieve sustainable stability.

OPEC presented the short-, medium- and long-term effects of COVID-19 on global energy markets and offered an overview of recent developments within the CoC. The Russian Federation presented on the Energy Strategy of the Russian Federation in the period to 2035, as well as on the Industrial Initiative on the Standardization and Certification of Oil and Gas Equipment as a potential vector of cooperation within the CoC.