OPEC said on Monday it has called an informal meeting of member countries for next month in Algeria to help stabilise the oil market.
The Vienna-based Organisation of the Petroleum Exporting Countries said in a statement that the meeting would take place on the sidelines of the International Energy Forum in Algeria from September 26 to 28.
“OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market,” it said.OPEC President Mohammed Bin Saleh Al-Sada reiterated the organisation’s view that oil demand will pick up in the third and fourth quarters of this year.
OPEC sees recent oil price declines and current market volatility as “only temporary” and due to weak refinery margins, an inventory overhang and the impact of Britain’s decision to leave the EU on the crude oil futures market.
An expected return of economic growth in oil-consuming countries would rekindle demand for oil in the remainder of the year while oil supply would tighten, leading to higher prices.
Al-Sada added that more investment in oil production was needed to meet growing demand and offset declining output from existing wells.