OPEC to pursue supply adjustments for oil market: Barkindo

Barkindo said that in terms of oil demand, the current estimate was for growth of 5.7 million barrels per day.



Oil prices fell on Thursday after Opec and its allies stuck to their current policy of monthly increases in oil production despite fears that a release of US crude reserves and the new coronavirus variant Omicron exert further pressure on prices. — File photo

By Reuters

Published: Sat. 4 Dec. 2021, 20:37

The Organization of the Petroleum Exporting Countries (OPEC) will continue its supply adjustments for the oil market, the OPEC secretary general said on Saturday.

“We will continue to do what we know best to ensure we achieve lasting stability in the oil market,” Mohammad Barkindo said during a webinar hosted by Italian think tank ISPI.

Oil prices fell on Thursday after Opec and its allies stuck to their current policy of monthly increases in oil production despite fears that a release of US crude reserves and the new coronavirus variant Omicron exert further pressure on prices.

Barkindo said that in terms of oil demand, the current estimate was for growth of 5.7 million barrels per day. “In 2022, we expect another 4.2 million,” he said.

He said the uncertainty and volatility in the markets was also driven by external factors such as the ongoing Covid pandemic and not necessarily oil and gas fundamentals.

“Now we are on track to bring the level of consumption in 2022 back to pre-Covid levels,” he said.

Barkindo said forecasts indicate that oil and gas will make up more than 50% of the global energy mix by 2045 or even until the middle of the century.

“In all the statements we’ve had from Glasgow, we have yet to see a concrete roadmap or plans on how to replace that 50%… without creating unprecedented turbulence in energy markets” , he said, referring to the Glasgow climate conference. . — Reuters

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