OPEC secretary-general expects oil inventories to fall by Q2

OPEC expects to see global oil inventories fall by the second quarter of this year in response to producers' agreement to cut output, OPEC Secretary-General Mohammed Barkindo said on Thursday.

Speaking to reporters on the sidelines of a conference, Barkindo said OPEC had no specific oil price objective in mind, but wanted a price that would sustain investment in the oil industry.

Asked whether there was a risk that Iraq would not keep to its agreement to reduce output, Barkindo said he had met with Iraqi officials and saw no reason to doubt that Iraq would implement its cuts fully.

He also said that in general, he was confident that producers were committed to the deal between OPEC and non-OPEC states. It would be premature to say whether the deal will need to be extended beyond six months, he said.