The Organization of the Petroleum Exporting Countries (OPEC) has no oil price targets but attaches importance to oil supply and demand balance, according to Haitham Al Ghais, the secretary-general of OPEC, on Monday.
In an interview on the Iranian oil ministry's website, SHANA, Al Ghais cited a variety of variables as the main drivers of oil prices, including persistently low jet fuel use and global macroeconomic data, particularly in the post-COVID era.
'In OPEC … we don’t target a certain price level. All our actions, all our decisions are made in order to have a good balance between global oil demand and global oil supply, and this is a function of many moving elements,' he said.
He reiterated that OPEC, in consideration of 'banking issues, higher inflation levels requiring tighter monetary policies, and the high debt levels in many key economies,' forecasts that global oil demand will surpass pre-COVID levels, reaching almost 102 million barrels per day.
Al Ghais also noted that given the continued underinvestment in the oil sector, 'it is likely that the world will definitely have to see a potential rise not only in the level of prices but also volatility.'
- OPEC welcomes Iran’s return to market
When sanctions are repealed, Iran, one of OPEC's founding members, will be welcomed back to the oil market as a responsible player among the group, according to Al Ghais during his first official visit to Iran.
Iran holds one of the world's largest deposits of proved oil and natural gas reserves, and also ranks as the world's third-largest oil and second-largest natural gas reserve holder.
The country’s energy sector has been hit by severe sanctions imposed by western countries after Washington withdrew from the Joint Comprehensive Plan of Action (JCPOA) in May 2018.
Since the election of Ebrahim Raisi as president last year, efforts have been made to resurrect the accord and lift restrictions on Iranian oil exports; however, disagreements between the key stakeholders have prevented the signature of the agreement.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr