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Impact of US NOPEC law on oil market demand: Insights from OAPEC Secretary General

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OAPEC Secretary General Jamal Al-Lugani said that the passage of the US “NOPEC” law, if approved, will lead to a significant supply failure to meet future demand in the global oil market.

Al-Lugani said in a press statement that “the global market is suffering from limited spare production capacity due to a lack of investment in the oil sector, exacerbated by attempts to phase out fossil fuels.”

He added: “Strategic reserves have fallen to a critically low level after members of the International Energy Agency used them as a tool to influence the oil market after the Ukrainian crisis, which over time proved to be ineffective.”

Al-Lugani said: “Supporters of the law argue that the Organization of the Petroleum Exporting Countries (OPEC) is raising oil prices, and they have not paid attention to the wave of global inflation and the increase in interest rates by central banks to contain it. “

He explained that “they also did not pay attention to the direct intervention in the pricing mechanisms in the oil market by the G7 of the largest industrialized countries, the European Union and Australia, which set a price ceiling for Russian oil exports.”

New risks and uncertainties for the oil market after the reintroduction of the NOPEC bill.

Link: https://t.co/tOERXmMuRbpic.twitter.com/qdirp3g5i7

— OAPEC (@OAPEC1) April 3, 2023

Source: RT

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