The world market will soon be encountered with an overabundancy of oil, said the Secretary-General of the Organization of Oil Exporting Countries (OPEC) Mohammad Barkindo, writes Bloomberg.
According to OPEC General Secretary General, in December 2021, the global oil market will face an excess of proposal, which will lead to oversaturation. The reason, according to Barkindo, is that the restoration of the global economy after a pandemic will be gradually slowing down.
He stressed that oil reserves are restored over the past six weeks, while such a perspective gives OPEC the right to increase oil production only gradually. The process of restoring the global economy depends on the set of unpredictable factors, therefore the careful actions of the organization, in his opinion, are justified.
Barkindo’s statements can be another signal that OPEC and its partners will continue to resist the pressure from the United States who have previously performed for increasing oil production. The organization decided to adhere to the already adopted strategy providing “stability and balance in the oil market.”
In early November, US President Joe Biden accused Russia and OPEC member states in a sharp increase in oil prices. He made his statement during a press conference on a climatic summit in Glasgow. In his opinion, the jump of prices for hydrocarbons occurred after the failure of OPEC countries and, in particular, Russia from the additional production of oil.