Member states lined up withOPECAfter the largest member of the organization said that action may be necessary to stabilize markets oil Globalism.
Within 48 hours of Saudi Energy Minister Prince Abdulaziz bin Salman comments that OPEC might have to cut production, other members from Iraq, Algeria, Kuwait, Equatorial Guinea and Venezuela issued statements expressing their support.
Prince Abdulaziz said in an interview on Monday that oil markets are suffering from “isolationInternational futures contracts – which have fallen in recent months – have failed to accurately reflect the fundamentals of supply and demand. The result, he added, has been “extreme” price fluctuations.
The prince said the Organization of the Petroleum Exporting Countries and its partners are ready to cut production to rebalance the market. And messages of support appeared from Baghdad to Caracas.
Crude oil traders were surprised by the comments of Saudi Arabia, which has come under pressure from the United States to help tame gasoline prices by increasing production. President Joe Biden had hoped for action following a visit to the kingdom last month, but Riyadh and its OPEC+ partners responded with only a token production increase of 100,000 barrels per day.
“OPEC +” decides to increase production by 100,000 barrels per day, starting from September
OPEC+ must also deal with the possibility of returning exports from member state Iran, which is close to reviving an international nuclear deal that might lift US sanctions on the oil trade. Meanwhile, EU measures are set to squeeze supplies from OPEC+ member Russia in protest of its invasion of Ukraine.
It is expected to get more clarity on the fifth of September, when the “OPEC +” alliance, which includes 23 countries, is scheduled to hold its next meeting.
