The Organisation of Economic Cooperation and Development (OECD)'s excess crude oil in floating storage has been drawn down considerably by 50 million barrels since June 2017.
The Secretary General of Organisation of the Petroleum Exporting Countries (OPEC), Mohammed Barkindo, made this disclosure, at the 2nd Technical Meeting of OPEC and non-OPEC producing countries.
He said this was supported by the shift in the market structure where for the first time since the summer of 2014, all major crude oil benchmarks have flipped into backwardation, signalling clearly a market that is steadily returning to balance.
According to him, OPEC's path towards market stability has seen several bumps along the way, and we have suffered occasional setbacks, but our determination and hard work are paying off.
He said the commitment shown by each and every country participating in the Declaration of Cooperation is unprecedented, and most remarkable.
Barkindo confirmed that average conformity to the supply adjustments has been over 100 per cent since the implementation of the decision on January 1, not only warms his heart personally, but has led to a new optimism in the oil market not seen for a very long time.
He stated: "Investment is returning, which bodes well for the future. Without investment now, we will not be able to meet the growing future demand of tomorrow, or accommodate the production losses of older fields. The global economy seems to also be benefitting from improvements in the sector, and is witnessing a state of growth not seen since the last financial crisis."
Saudi Arabia's Minister of Energy, Industry and Mineral Resources, and President of the OPEC Conference, Khalid A. Al-Falih, said: "there is now global recognition that without our collaborative action, the market would have continued to exhibit extreme volatility and future uncertainty, with far-reaching negative consequences for producers, consumers, investors, the industry, and the global economy at large.