Oil-producing cartel OPEC has reached a crucial turning point in its measures to return the oil market to balance, the organization's secretary-general told a CNBC-moderated panel at the World Energy Congress in Istanbul.
"I think we have restored the broad consensus among oil producers and I'm glad that this consensus we have got major consuming countries also on board. We have turned the wheel going forward," Mohammad Barkindo said Tuesday.
Barkindo said when he assumed office in August that he wasn't sure where the energy institution or market was heading — especially as the oil market was going through its "most severe" and longest period with production and supply ramping up intensively over the course of just two years.
"This cycle became not only the most severe but also the longest so far. It is in the midst of this, that I took office in August and immediately together with my colleagues and partners — within OPEC and outside of OPEC — we began extensive consultations in order to build a consensus going forward."
"It was obvious that there was need for a change in direction and Algiers demonstrated the need to have this new direction in order to return the market to some form of stability and stability on a sustainable basis. Hence the Algiers accord which saw OPEC for the first time since 2008, agreeing on [a range] of a ceiling for all of its 14 member countries."
"Now that's highly significant and Algiers marked a turning point in OPEC."
In September, OPEC managed to reach consensus on managing the market at its meeting in Algiers, with the group agreeing to reduce output to a range of 32.5–33.0 million barrels per day (mb/d) across all its members. At the time, OPEC estimated that its current output came in around 33.24 mb/d, according to Reuters.