14/02/2023 by OilStoreAdministrator
The Secretary General of OPEC, Haitham Al Ghais, has told Reuters that he believes the OPEC+ group, which includes the OPEC member nations plus some non-member oil-producing countries, deserves to be credited for the manner in which it has intervened in the oil markets recently.
Speaking on the sidelines of a conference in India, Al Ghais said:
“Due recognition should be given for our constructive and positive role in supporting global market stability including to remind ourselves that the G20 and major consumers around the world commended us for our historical actions taken since 2020.”
The OPEC+ group drew some criticism last year when it announced its intention to collectively reduce production by some 2 million barrels per day, which is more than the total oil production of Norway. In reality, however, the cut is thought to be about half that, due to some countries previously undershooting their quotas.
Since then, considerable uncertainty in supply and demand has kept the price of Brent Crude in the $80–90 per barrel range. It is therefore unsurprising that OPEC’s Joint Ministerial Monitoring Committee (JMMC), which provides advice on market interventions, decided to recommend maintaining the current production level.
Although oil majors like BP and ExxonMobil, which also make the Castrol and Mobil lubricant range, have considerable production outside the OPEC+ group, OPEC+ has a large influence on market dynamics. Al Ghais also told Reuters that the organisation had repeatedly proven its ability to react quickly to market disruptions.
You may also interested in:
When should you replace industrial oil vs top it up?
Effective lubricant use is critical for operations using machinery in industrial applications.
Petronas and Petrobras sign contract for Brazilian oil fields
State-funded Malaysian oil and gas company, Petronas, recently completed a new transaction with Petrobras, the Brazilian oil major.