OPEC + strives to keep oil at $ 70: Iraqi oil minister
OPEC + is working to keep prices around $ 70 a barrel, Reuters reported, citing Iraqi Oil Minister Ihsan Abdul Jabbar Ismail.
The official said the ministry hopes oil prices will stay above $ 65 a barrel.
OPEC – and its Russian-led allies – agreed earlier this year to add 400,000 bpd to total production in early August until they restore production levels to pre-election levels. pandemic, which would occur by the end of the first half of 2022.
However, demand has grown faster than initially expected and calls have been made, including from the United States, for OPEC to ramp up production faster. For now, the cartel has resisted.
A recent Reuters report noted that not all OPEC + members can simply turn the taps back on. In Nigeria, Angola and Kazakhstan, according to the report, years of underinvestment have combined with delayed maintenance due to the pandemic to make restoring production a difficult task.
OPEC + ‘s compliance with its production control agreement rose to 116% in August. The cartel also revised its demand outlook for next year in its monthly publication, and substantially. OPEC said it now expects demand for oil to reach 100.8 million bpd, an upward revision of nearly 1 million bpd from its monthly oil market report. ‘August.
This year, total world oil demand remains unchanged at 96.7 million bpd for the whole of 2021. But the demand for the fourth quarter has been revised down slightly, to 110,000 bpd from the estimate of August from 99.82 million bpd to 99.7 million bpd now, OPEC said in its September report. This was before the gas crisis in Europe really took off.
Now OPEC producers are warning that the crisis could increase demand for oil. Iraq’s oil minister said he expected higher demand for his crude as utilities searched for alternatives to gas. The boss of the Nigerian state oil company predicted that oil prices could rise by $ 10 a barrel over the next six months.
By Charles Kennedy for Oil chauffage
More reads on Oil Octobers: