International Energy Agency’s Criticism Met with Action by OPEC

OPEC responded to criticism from the International Energy Agency (IEA), and the Organization of the Petroleum Exporting Countries renewed its warnings about the impact of cuts in hydrocarbon investment on global energy security.

OPEC reiterated in a statement that neither it nor the OPEC+ group is targeting a specific price per barrel of oil, but rather focusing on the market and investment, noting that there are other markets that are more volatile than oil. market.

The organization quoted its Secretary General Haytham Al-Ghais: “In response to recent comments by the International Energy Agency that criticize OPEC and OPEC+, the OPEC Secretary General reiterated that OPEC and OPEC+ are not are focused on oil prices, but they are focused on the fundamentals of the market and securing vital investment in oil, an industry the world desperately needs.”

The Secretary General of the OPEC Organization stressed that “blaming oil for inflation is wrong and technically incorrect, since there are many other factors that cause inflation.”

The Secretary General of the Organization added that the International Energy Agency should be “very cautious about further attempts to undermine investment in the oil industry”, stressing that investment in the oil sector is an important issue for global economic growth.

Earlier in April this year, the International Energy Agency indicated in its monthly report that a number of OPEC+ countries, including Saudi Arabia, announced a voluntary cut in production from May to the end of the year by 1.16 million barrels per day, and Russia extended its voluntary cut of 500,000 barrels by the end of the year.

The agency said that “large deficits are expected in the second half of 2023, and new cuts could lead to a surge in oil prices, and inflation” will hit vulnerable consumers, especially in emerging market and developing countries.

Source: Prime