Opec monitoring oil prices, seeks market balance

Iraq Oil Minister Ihsan Abdul Jabbar on Monday said the Organisation of the Petroleum Exporting Countries (Opec) and allies including Russia, known as Opec+, are monitoring the oil price situation, wanting to have a balance in the markets.

“We don’t want a sharp increase in oil prices or a collapse,” he said in a televised interview on state TV.

Oil prices fell $2 a barrel on Monday, settling at nine-month lows in choppy trade, pressured by a strengthening dollar as market participants awaited details on new sanctions on Russia.

Brent crude futures for November settled down at $84.06 a barrel, while US West Texas Intermediate (WTI) crude for November delivery dropped to $76.71.

“We entered a challenging period. Global factors led to the decrease [in oil prices], most importantly lower growth and higher inflation rates,” Abdul Jabbar said.

Opec+, has this year ramped up oil output, looking to unwind record cuts put in place in 2020 after the pandemic slashed demand.

However, Opec+ in recent months has failed to achieve its planned output increases due to underinvestment in oilfields by some Opec members and by losses in Russian output. — Reuters