Mohammed Barkindo, secretary-general of the Organisation of Petroleum Exporting Countries (OPEC), says the risk of US shale production keeping oil prices low has been reduced.
Barkindo was answering questions from journalists on Wednesday at the annual Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC).
“Here in ADIPEC, talking to a number of producers, especially in the shale basins, there is a growing concern by themselves that the slowdown is almost graduating into a fast deceleration,” he told CNBC.
“And the numbers are starting to show it. They are the operators, they are the ones investing, and they are telling us that we are probably more optimistic than they are considering the variety of headwind challenges they are facing.”
The US has become the world’s largest crude oil producer in recent times, threatening the power wielded by OPEC.
OPEC and non-members have had to maintain a production quota to mop-up a glut in the market and keep prices stable.
“The world requires and needs OPEC and non-OPEC to continue to work together and weather the storms as they emerge in order to maintain stability on a sustainable basis. This, we are very committed and determined to do,” he said.
Asked if OPEC would maintain the production cuts or deepen them, Barkindo said it is “very premature to discuss” adding that a review of the current situation would be required.
The OPEC conference will hold between December 5 and 6 in Vienna.