OPEC is not a political organization: Says Secretary General

OPEC Secretary-General Haitham Al-Ghais stated that the organization is not political, but rather works to ensure oil flows and does not take sides.

 

This comes as the market experienced weekly gains ranging from 15 to 16.5%.

 

Al-Ghais clarified that the recent OPEC + decision to reduce output by two million barrels per day was proactive, and deliberate, and was reached unanimously by 23 countries, rather than a decision by one country or a group of countries against another.

 

He also noted that it has plenty of leeway to deal with the anticipated economic uncertainty, and according to the agreement, Saudi Arabia’s share of production will fall to 10.48 million barrels per day in November.

 

According to Youssef Al-Shammari, CEO of CMarkits London, the real reductions will be between one million and 1.1 million barrels per day, with Saudi Arabia, the UAE, and Kuwait receiving approximately 800,000 barrels from the reduction.

 

Al-Shammari predicted that if there are economic developments, particularly in China, and expectations of recession in Europe and the US, there will be subsequent steps in light of the lack of clarity in the global vision.

 

According to Tariq Al-Rifai, director of the Corum Center for Strategic Studies, the OPEC Plus decision is “positive” and will help to balance supply and demand in the oil market.

 

He continued: China’s and other developed countries’ economies are slowing.

Oil prices rose for the fifth consecutive session at the close of trading yesterday, resulting in significant weekly gains of 16.5%.

 

US crude futures rose 4.7% to $92.64 per barrel at settlement, the highest settlement price since the August 29th session.

 

It also gained 16.5% on the week, while Brent crude futures rose 3.7% to $97.92 per barrel, the highest settlement price since the August 30th session. Crude gained 15% in a week as well.