New OPEC Secretary General Haytham Al-Ghais said the organization has a “strong” relationship with Moscow and always seeks to separate politics from its goals in order to achieve market stability.
Al-Ghais continued: “In our meetings, we always try to separate political aspects from what we do, in terms of managing the market balance and in terms of what we do as (OPEC+), and I think the methodology is clear” . He said: “The Russian leadership clearly supports the declaration of cooperation from today. First, in 2017”, noting that relations with Russia are strong in terms of market governance.
This came in response to a question about the impact of sanctions imposed by the West on Russia and the role of OPEC+, where Al-Ghais emphasized that cooperation with Russia is not limited to this form, noting that there is an “ongoing dialogue” between OPEC and Russia, where “there is no competition” with Russia, but both sides are interested in partnerships.
Asked if this meant he trusted Russia, Al-Gais replied, “Yes.”
OPEC’s new secretary general said today, Wednesday, August 17, that the organization is not responsible for the high rate of inflation, alluding to a chronic lack of investment in the oil and gas industry and stressing in an interview with CNBC that OPEC was not behind this increase. In prices, but other factors outside of OPEC are what actually drove gas and oil prices up, including the lack of investment in the oil and gas industry, or “chronic lack of investment,” as he put it.
“This is a harsh reality that people need to come to terms with, as well as politicians,” Al Ghais said. “Once that is achieved, I think we can start thinking about a solution, and the solution is very clear.” He pointed out that a solution exists with OPEC, which is “investment, investment and investment.”
Al-Ghais’ comments came shortly after a powerful group of OPEC producers, in addition to partners from outside, came up with a surprise by announcing plans to add just 100,000 barrels a day from next month, which is considered “disrespectful to oil.” “for the visit of US President Joe Biden to Saudi Arabia, the largest leader of the Organization of the Petroleum Exporting Countries, last month and his request to produce more crude oil to help the United States and the world economy. OPEC+ members have agreed to increase oil production by 26,000 barrels per day for Russia and Saudi Arabia, bringing production to 11.03 million barrels per day.
In addition, the Organization of the Petroleum Exporting Countries indicated that the chronic underfunding of the oil sector has led to a reduction in spare capacity. The meeting of the OPEC+ group is scheduled for September 5 next year.
When asked if OPEC, which produces about 40% of world production, could be responsible for the increase in energy prices that led to high inflation, Al-Gais replied that the question is relative, and that this is not necessary, as “(OPEC) ) In turn, we have been working to increase production according to what we see and with a gradual mechanism that has been very transparent … We are doing our best to bring the market back into balance, but there are economic factors that are really out of control (OPEC).”
Oil prices have fallen in recent weeks amid renewed fears of a global recession and expectations of worsening global demand, so Brent futures traded at $92 a barrel on Wednesday morning, down 0.4%, while West Bank oil futures traded at $92 a barrel, Texas Intermediate at $86.25 a barrel, down more than 0.3%.
And futures for Brent oil rose in the days following the start of Russia’s military operation in Ukraine in February last year to almost $128 a barrel, part of the gains seen across all forms of energy, pushing inflation to its peak. decades ago.