Opec monitoring oil prices, seeks market balance

Iraq Oil Minister Ihsan Abdul Jabbar global factors led to the decrease in oil prices.

By Reuters

Published: Tue 27 Sep 2022, 3:19 PM

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.

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“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.

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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

Reuters

Published: Tue 27 Sep 2022, 3:19 PM

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