During the latest OPEC ministerial meeting, concerns were raised that insufficient investment into the sector will impact the availability of adequate supply to meet growing demand beyond 2023, reports Asian Lite Newdesk
The Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC participating countries have decided to raise crude oil production level by just 100,000 barrels per day for the month of September.
The decision was taken at the 31st OPEC and non-OPEC Ministerial Meeting that was held via videoconference on Wednesday.
Reportedly, they rose production level by 648,000 barrels per day in July and August.
Ever since the conflict broke out in Ukraine, the supply chain disruptions in crude oil have persisted, causing a rapid rise in its prices. Prior to the conflict, crude oil was around USD 90 per barrel and rose to as high as USD 115 in less than a week after the conflict in late February. However, recently crude oil prices have retreated from their highs to trade below USD 100 per barrel.
During the latest meeting, concerns were raised that insufficient investment into the sector will impact the availability of adequate supply in a timely manner to meet growing demand beyond 2023 from non-participating non-OPEC oil-producing countries, some OPEC Member Countries and participating non-OPEC oil-producing countries.
“It noted that preliminary data for OECD commercial oil stocks level stood at 2,712 mb in June 2022, which was 163 million barrel lower than the same time last year, and 236 mb below the 2015-2019 average, and that emergency oil stocks have reached their lowest levels in more than 30 years,” the intergovernmental organisation said in a statement.
The Meeting also noted that Declaration of Cooperation conformity has averaged 130% since May 2020, supported by voluntary contributions of some participating countries.
During Wednesday’s meeting, heads of delegation congratulated the new OPEC Secretary General, Haitham Al Ghais of the State of Kuwait, on his appointment after the incumbent head passed away in early July, and wished him all the success in leading the Organisation and further supporting the cooperation between OPEC and non-OPEC oil-producing countries.
Mohammad Sanusi Barkindo passed away in his home country Nigeria on July 5 at the age of 63. Born in 1959, Barkindo had worked in the crude oil sector for around 35 years, and his hobbies were reading, charity work, the environment, and soccer.
Heads of delegation recalled the key role Barkindo played in the global energy scene and in promoting the Declaration of Cooperation (DoC), as a leading figure representing OPEC who skillfully built bridges with key energy stakeholders, including producers and consumers, globally, the OPEC statement added.
They have expressed words of condolences to OPEC member country Nigeria, the OPEC Secretariat and the family of Barkindo.
Al Ghais – a respected oil technocrat and well-known OPEC figure – brings a great wealth of experience from both his diplomatic background, as well as his extensive experience in the energy and oil sectors in both OPEC Founder Member Kuwait and internationally.
Last month, US President Joe Biden visited Saudi Arabia with a hope to secure a promise from Saudi Arabia to increase its output of oil, which could lead to easing of global supply pressures.
But he finished the Middle East trip reportedly without an agreement on raising supply. Saudi Arabia’s Foreign Minister, Prince Faisal bin Farhan Al Saud said that officials at the US-Arab summit did not discuss oil and that the Opec+ oil cartel nations would continue to assess market conditions.