Barkindo: OPEC will maintain steady output quota amid escalating political tensions

The Organisation of Petroleum Exporting Countries (OPEC) says it will remain focused on a steady flow of energy supplies. 

Mohammad Barkindo, secretary-general of OPEC, said this on Thursday at the ongoing Nigeria Energy Forum (CERA Week 2022 Agenda) in Houston, Texas.

The forum is tagged: “Oil and Gas Investments: The Future of Fossil Fuels Amid the Quest for Decarbonisation”.

According to NAN, Barkindo, in his keynote address, said OPEC would remain focused on energy supplies despite the current Russia-Ukraine crisis and COVID-19 pandemic, which had adverse effects on the energy markets globally.

“Over the past ten days or so, we have seen escalating geopolitical tensions, which are still unfolding and having adverse effects on energy markets across the world, resulting in heightened levels of volatility,” he said. 

“The tensions have spooked investors and rattled commodity markets. We recognise this and are following developments very closely.

“Our hope in this crisis is that all parties involved can reach positive outcomes that will be acceptable to all.”

Barkindo noted that the effect of COVID-19 on the global oil sector had enlightened OPEC about the value of taking a prudent approach to oil supply and demand developments.

According to him, this should be done with the flexibility to adapt strategies as and when needed, ultimately for the well-being of the global community.

The secretary-general said there was some optimism for the market outlook in 2022, but the oil cartel was also cognisant that uncertainties remained, further complicated by the unfolding geopolitical developments and extraordinary market volatility.

According to him, this optimism is being driven by the vaccine rollout – although this needs to filter through to more developing countries, improving mobility and the continuing economic recovery.

“Uncertainties relate to COVID-19 developments, although at present we see the impact of the Omicron variant on the oil market to be relatively mild and short-lived,” he said. 

“Additionally, the geopolitical challenges already mentioned global supply chain issues, potential effects of rising inflation, consequent rise in interest rates, and knock on-impacts from challenges in gas, coal, electricity sectors and need to be closely monitored.”