OPEC will continue supply adjustments to the oil market

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Mohamed Barkindo, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said yesterday that it will continue its supply adjustments to the oil market.

He added during a webinar organized by the Institute of I. S. with me. “We will continue to do our best to ensure stability in the oil market on a sustainable basis,” the Italian research firm said.

Oil prices fell last Thursday after OPEC and its allies stuck to their current policy of monthly increases in oil production, despite concerns that withdrawals from US crude reserves and the novel coronavirus mutant Omicron will increase pressure on prices.

Barkindo said that with regard to oil demand, estimates at the moment indicate a growth of 5.7 million barrels per day.

“In 2022, we expect 4.2 million more,” he said.

He added that the uncertainty and volatility in the markets were also due to external factors such as the current Covid pandemic, and not necessarily to oil and gas related causes.

“We are now on the way to return the level of consumption in 2022 to pre-Covid levels,” Barkindo said.

He added that forecasts indicate that oil and gas will constitute more than half of the global energy mix in 2045 or until the middle of the century.

“After everything that has been announced in Glasgow, we haven’t yet seen any concrete roadmap or plans for how to replace that 50 percent … without creating unprecedented disruptions in energy markets,” he said, referring to the Glasgow climate conference.

“Oil and gas are essential for the foreseeable future,” he added.

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