Oil recovery may gather pace in H2, says Opec chief

Oil recovery may gather pace in H2, says Opec chief

Oil recovery may gather pace in H2, says Opec chief



Oil and gas markets recovery is likely to gather pace in the second half of the year as countries further ease lockdown restrictions and demand rises, said Opec Secretary General Mohammad Sanusi Barkindo, expressing cautious optimism that the worst is over.

The huge and unprecedented oil market imbalance that faced the industry in April in the wake of Covid-19 pandemic required an unparalleled response from producers, said Barkindo, taking part in the online Adipec Energy Dialogues. 

Underlining the importance of the two-year agreement, signed by Opec and non-Opec oil producing countries in the Declaration of Cooperation (DoC) on April 12, and revalidated earlier this month on June 6, Barkindo said he was confident that more stability would return to oil markets in the second half of the year, but more work is required to draw down existing oil inventories to help rebalance markets.  

"As we see countries begin to open up, we will see demand start to come back," Barkindo said. "I remain optimistic but cautious the worst is over and a recovery will be in full swing in the second half of this year, with stocks beginning