The common objective of the Organization of the Petroleum Exporting Countries and its non-OPEC partners has always been to maintain oil market stability, not to raise prices or bring them down, OPEC Secretary-General Mohammad Barkindo said on Saturday.
Asked whether bringing 9.7 million barrels a day back to the market according to the latest adjustment decision by OPEC+ would help bring oil prices down, he said “we cannot dictate to the market what it does.”
However, he stressed that the task to continuously bring supply and demand in balance is the responsibility of all producers.
He made his remarks during his participation in the sixth edition of Iraq Energy Forum organized by the American University in Baghdad.
“We are working with our allies to develop the oil market, achieve balance, and organize supply in the market according to understandings between OPEC members and their allies,” Barkindo told reporters.
“We will continue our steps to achieve price balance in the oil market,” he added, praising Iraq’s role in supporting OPEC decisions to stabilize oil prices during the past years.
He said Iraq is able to show its support for the organization and that it is the first country to support price stability decisions.
The two-day forum kicked off on June 18 under the theme “Global Energy Security in Times of Conflict and Uncertain Economic Recovery.”
It discusses issues and files related to the energy, oil and gas sector, with the participation of a number of foreign companies operating in Iraq.
Brent crude is trading at $120 per barrel and is expected to reach $150. Some fear it keeps going higher, with wild chatter about oil hitting $175 or even $180 by the end of 2022.
OPEC’s top diplomat told European Union officials in April that the current crisis in global oil markets caused by Russia’s invasion of Ukraine is beyond the group’s control.
Russian oil supply losses stemming from current and future sanctions or a boycott by customers could potentially exceed seven million barrels a day, Barkindo said.
He pointed out that markets are being swayed by political factors rather than supply and demand, leaving little for the organization to do.
