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OPEC aims to stabilize market regardless of the prices

OPEC

London, (Business News Report)|| The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Muhammad Barkindo, said that the organization aims to stabilize and develop prices without considering prices.

In an interview with the sixth session of the Energy Forum in Iraq, organized by the American University in Baghdad, Barkindo said that the common goal between OPEC and its partners is market stability, not lowering or raising prices.

It should be noted that the OPEC includes 13 producing countries, led by the Kingdom of Saudi Arabia.

In response to a question about whether returning 9.7 million barrels per day to the market, according to the recent OPEC+ decision, will help reduce oil prices, Barkindo added: “We cannot dictate to the market what it does,” noting that the task of balancing supply and demand is constantly. It is the responsibility of all producers.

He continued, “We are working with our allies to develop the oil market, achieve balance, and regulate supply in the market in accordance with the understandings between the organization’s countries and their allies,” explaining: “We will continue our steps to achieve price balance in the oil market.”

Last April, Barkindo told European Union energy officials that the current crisis in global oil markets, resulting from Russia’s invasion of Ukraine, was outside the organization’s control.

He pointed out that the global oil market may lose more than 7 million barrels of oil per day from Russian supplies as a result of current or future sanctions imposed on Russia due to the invasion of Ukraine, or due to the boycott of some customers of Russian oil.

He explained that global markets are currently affected by political factors more than supply and demand factors, which reduces the movement space for OPEC.

Oil prices fell, affected by demand concerns, in the wake of last week’s interest rate hike, but new sanctions on Iran limited the decline.

Brent crude futures fell 47 cents, or 0.4%, to 119.34 a barrel, while West Texas Intermediate crude futures fell 57 cents, or 0.5%, to $117.02 a barrel.

Central banks across Europe raised interest rates on Thursday, and some of the rate hikes shocked markets and hinted at higher borrowing costs to counter soaring inflation that is putting pressure on corporate profits and squandering savings.

The wave of interest rate hikes comes in the wake of the US Federal Reserve raising the interest rate by 75 basis points, last Wednesday, to the highest rate since 1994.

But investors remained focused on lower supplies, after the United States announced new sanctions against Iran.

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