PARIS (Reuters) - OPEC Secretary General Mohammad Barkindo said on Thursday that a global oil inventory overhang was declining but oil stocks still needed to fall closer to the five-year industry average.
"While it is evident that the market rebalancing is now moving forward and investment specifically in short-cycle projects is returning, it is essential we do not take our eyes off our desired goals," he told a conference in Paris.
"We need to see the global stock overhang move closer to its five-year average. We need to see the return of more long-cycle investments."
The International Energy Agency said in its latest monthly oil market report that Organisation for Economic Co-operation and Development (OECD) oil industry stocks stood at around 3.06 billion barrels at the end of February, a figure that mostly includes crude and oil products.
Stocks were some 336 million barrels above the five-year average, the IEA said.
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The Organization of the Petroleum Exporting Countries and non-OPEC producers are scheduled to meet on May 25 to discuss extending curbs on output which they agreed to covering the first half of 2017.
The cuts total 1.8 million barrels per day, two-thirds of that from OPEC producers, and are aimed at clearing a supply glut that has depressed oil prices.
The International Energy Agency said this month that inventories in industrialised countries were still 10 percent above the five-year average, a key gauge for OPEC.
(Reporting by Alex Lawler; writing by Rania El Gamal and Ahmad Ghaddar; editing by Jason Neely)
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