OPEC: We Do Not Target Oil Prices, IEA Should be 'Very Careful'

A US Chevron oil tanker is seen at a port in Venezuela. (Reuters)
A US Chevron oil tanker is seen at a port in Venezuela. (Reuters)
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OPEC: We Do Not Target Oil Prices, IEA Should be 'Very Careful'

A US Chevron oil tanker is seen at a port in Venezuela. (Reuters)
A US Chevron oil tanker is seen at a port in Venezuela. (Reuters)

The International Energy Agency (IEA) should be "very careful" about discouraging investment in the oil industry, which was vital for global economic growth, announced OPEC Secretary General Haitham al-Ghais.

Ghais warned that such statements could lead to oil market volatility in the future.

He said that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a group known as OPEC+, were not targeting oil prices but focusing on market fundamentals.

He warned that finger-pointing and misrepresenting the actions of the oil exporters and their allies was "counter-productive."

IEA Executive Director Fatih Birol has been critical of the OPEC+ group's surprise announcement of production cuts of 1.66 million barrels per day (bpd) from May until the end of 2023.

In an interview with Bloomberg on Wednesday, Birol said OPEC should be careful about pushing oil prices up as that would translate into a weaker global economy.

If anything would lead to future volatility, it is the IEA's repeated calls to stop investing in oil, knowing that all data-driven outlooks envisage the need for more of this precious commodity to fuel global economic growth and prosperity in the decades to come, especially in the developing world, added Birol.

On Thursday, Ghais said blaming oil for inflation was "erroneous and technically incorrect" and that the IEA's repeated calls to stop investing in oil is what would lead to market volatility.

Saudi Arabia also blamed the IEA and its initial predictions for a 3 million bpd fall in Russian production on the back of the Ukraine invasion last year for Washington's decision to sell oil from its reserves.

Russian Deputy Prime Alexander Novak said on Thursday that the OPEC+ group of leading oil producers saw no need for further output cuts despite lower-than-expected Chinese demand but that the organization can constantly adjust policy if necessary.

He stressed that Russia reached its targeted output this month after announcing cuts of 500,000 bpd, or five percent of its oil production, until the year-end.

Russia is part of the OPEC+ group of oil-producing countries that announced a combined reduction of around 1.16 million bpd earlier this month, a surprise decision the US described as unwise.

Novak added that Russian oil and gas condensate production is expected to decline to around 515 million tons (10.3 million bpd) this year from 535 million tons in 2022, broadly in line with a Reuters report this week.

Asked if the group needed to lower its output further because of falling oil prices, Novak replied: "Well, no, of course not because we only made a decision (on the reduction) a month ago, and it will come into force from May for those countries that have joined."

He added that OPEC+ did not expect a shortage in oil supplies in global markets after production cuts, as expected by the International Energy Agency.

Russia maintained its oil production and exports by increasing sales outside of Europe following the severe Western sanctions over the Ukraine war.

Novak said that Russia would this year divert to Asia 140 million tons of oil and oil products that previously would have headed to Europe. He also said Russia would supply 80 million tons and 90 million tons of oil and oil products to the West in 2023.

Meanwhile, oil prices rose on Thursday, recouping earlier losses fueled by fears of a recession in the US and increased Russian oil exports, which offset the impact of OPEC production cuts.

New orders for key US-manufactured capital goods fell more than expected in March, and shipments declined.

US Energy Information Administration (EIA) data showing US crude inventories fell last week by 5.1 million barrels to 460.9 million barrels helped to limit the price fall, far exceeding analyst forecasts of a 1.5 million drop in a Reuters poll.

OPEC's share of India's oil imports fell fastest in 2022/23 to the lowest in at least 22 years, as intake of cheaper Russian oil surged, data from industry sources show.

Sources said that oil loading from western Russian ports in April would be the highest since 2019, exceeding 2.4 million bpd, despite Moscow's pledge to reduce production.

Moscow has also increased fuel supplies to Türkiye, Asia, Africa, the Middle East, and Latin America.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.