There’s no shortage of the crude oilin the market despite the surging prices of the commodity,the Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Sanusi Barkindo,
Barkindo, who said this at CERAweek forum,
insisted that there’s “no physical shortage of oil”,said that OPEC had decided last year to release the 5.8 million bpd, being the last tranche of the quantum of oil withdrawn from the market in the heat of the Covid-19 pandemic, reason it is gradually feeding the market with 400,000 barrels every month.
According to him,not all member countries are currently able to fulfil their obligations because of capacity constraints.
He added:“Again, we go back to the issue of under-investment and it’s not only in the US or Europe. It’s globally and it requires a global solution,” he stated.
He said that OPEC remains friendly and apolitical, adding that said the organisation would continue to assist the market in maintaining stability.
He said that the oil producers’ group has no control over current global events, explaining that geopolitics was dictating the pace of the market.
He added:“We are facing what is likely to be a global game changer in terms of the energy transition.It is important to keep communication lines open, especially in times of crisis like the one the world is facing today. All we can do is to stay the course
“I have heard from several speakers here at CERAweek that current tightness in the market condition might be creating some demand destruction.
“Even as that might be the case, the other side of the equation is probably more critical at the moment, which is supply is increasingly lagging behind.”
