He said OPEC does not compete with Russia, calling it a “big, major and very influential player on the global energy map,” Alrai reported. OPEC+ is an alliance of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia. Al-Ghais, the former OPEC governor of Kuwait, will chair his first OPEC+ meeting on August 3, at which the group will consider keeping oil output unchanged for September despite calls from the United States for more offer. Although a modest output increase is also likely to be discussed, eight sources told Reuters last week. AL-Ghais told Alrai that “OPEC does not control oil prices, but implements what is called market coordination in terms of supply and demand,” describing the current oil market situation as “very volatile and turbulent.” He added on the recent oil price increases: “As for me, I still stress that the recent increase in oil prices is not only related to the developments between Russia and Ukraine. “All the evidence confirms that prices began to rise gradually and cumulatively, and before the outbreak of the Russian-Ukrainian developments, due to the prevailing perception in the markets that there is a lack of excess production capacity, which has been confined to a few and limited countries,” al-Ghais said. Oil soared in 2022 to its highest level since 2008, topping $139 a barrel in March, after the United States and Europe imposed sanctions on Russia over its invasion of Ukraine. Prices have since fallen to around $108 as rising inflation and higher interest rates raise fears of a recession eroding demand. Asked about the factors that will affect oil prices by the end of the year, al-Ghais said: “In my view, the most important factor will be the continued lack of investment in drilling, exploration and of the production. “ “This will push prices in an upward direction, but we cannot determine the level they will reach.” (Reporting by Moataz Mohamed and Nayera Abdallah; Editing by Philippa Fletcher and Sandra Maler)
