OPEC secretary-general says Russia’s accession to OPEC+ is vital to the deal’s success


The new OPEC secretary-general has said Russia’s accession to OPEC Plus is essential to the deal’s success, Kuwait’s Alrai newspaper reported Sunday, citing an exclusive interview with Haitham al-Ghais.

Alrai said OPEC is not in competition with Russia, calling it “a large, major and very influential player on the world energy map”.

OPEC+ is an alliance of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia.

Kuwait’s former OPEC president, Al-Ghais, is set to head the first OPEC+ meeting on August 3, where the group said it would cut oil production in September despite requests for additional supplies from the United States. We may consider maintaining the quantity.

AL-Ghais told Alrai that “OPEC does not control oil prices, but the practice is to regulate the market in terms of supply and demand”, describing the current state of the oil market as “very high”. It’s unstable and disorganized,” he said.

He added of the recent rise in oil prices:

“All the data show that before the Russian and Ukrainian developments occurred, prices began to rise gradually and cumulatively due to the general perception in the market that there was a shortage of reserve capacity. And it is a limited country,” Argais said.

After the US and Europe imposed sanctions on Russia over its invasion of Ukraine, oil surged to its highest level since 2008 in 2022, topping $139 a barrel in March. Prices then fell to around $108 amid growing fears of a recession that would undermine demand due to sharp inflation and rising interest rates.

Responding to a question about the factors that will affect oil prices by the end of the year, Al-Ghais said: ”

“This will push prices upwards, but we cannot determine the level they will reach.”

Reuters

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