The new Secretary General of OPEC, Haytham Al-Ghais, spoke about the challenges facing the global oil market, the reasons for the rise in oil prices and cooperation with Russia.
As of today, Al-Ghais will take over the leadership of the Organization of the Petroleum Exporting Countries at a time when global oil markets are facing challenges and pressure.
In an interview with the Kuwaiti newspaper Al-Rai, Al-Gais stressed that the strength of OPEC lies in its cohesion and solidarity of its countries, despite all the surrounding global circumstances, and indicated that the reduction in oil investment will be reflected in rising prices.
The new Secretary General of the Organization “OPEC” said that the rise in oil prices is associated not only with the Ukrainian crisis, but also with the lack of free production capacity in the world. The following are Al-Ghais’ most famous statements during interviews:
Can OPEC replace Russian oil?
– Firstly, OPEC does not compete with Russia, as it produces about 10 million barrels, which is 10 percent of world production per day, that is, 1 barrel of oil out of every 10 barrels of oil produced per day comes from Russia.
Secondly, we must not forget that Russia is a large, large and very influential player on the world energy map, not only in oil, but also in gas, coal and other minerals.
What is Russia’s position in OPEC+ after the crisis and sanctions?
– Russia is a strategic partner and one of the largest producers, and its presence with us in the OPEC + alliance to reduce production is necessary for the success of the agreement, and it has been with us since 2017, i.e. for over 5 years and Russia has been playing a very important and important role in supporting and ensuring the success of the OPEC+ agreement as it is the Vice Chair of the Joint Production Control Committee.
What is the secret behind Russia’s post-sanctions oil revenue growth?
– Rising oil prices offset lower volumes. Reports have pointed to a decline in Russian production in recent months, but now it has started to pick up again.
Where is this increase in Russian oil going?
– The latest data showed that Russia ranks first in terms of supplies to the Chinese market. Russia began to compensate for the volumes sent to Europe by exporting to other markets, primarily to India and China.
How do you see the impact of the Ukrainian crisis on the oil markets?
The influence of wars and military-political skirmishes on the oil markets is often temporary and fades away as events end, and over the past 62 years and since the creation of OPEC in 1960, the world has witnessed many wars, events and military skirmishes, and prices always rise rapidly and sharply with the event and then return to supply and demand levels.
– As for me, I still confirm that the recent rise in oil prices is connected not only with the events between Russia and Ukraine, but all the data confirm that prices began to rise gradually and cumulatively, and before the start of the Russian-Ukrainian events due to for the prevailing opinion in the markets about the lack of spare production capacity, which is limited to a few and limited countries.
During a meeting last January, the Kuwaiti ministers of the Organization of the Petroleum Exporting Countries (OPEC) appointed Haitham Al-Gais as the organization’s new secretary general.
Haytham Al-Ghais has extensive experience in the oil industry as well as in the work of the Ministry of Foreign Affairs of Kuwait. In 1990, he graduated from the University of San Francisco in California with a degree in political science.
Haytham Al Geis is fluent in six languages including Arabic, English, German, Portuguese, Spanish and French, and also speaks Chinese.