Daily Management Review

OPEC Chief: Cartel's actions are not driving up oil prices


According to OPEC Secretary General Haitham al-Ghais, the organization of oil exporting nations' actions are not intended to affect the price of fossil fuels.

He made the statement in response to criticism from Fatih Birol, director of the International Energy Agency (IEA), who cautioned OPEC to exercise caution and warned that rising oil prices could trigger a worldwide economic crisis.

According to Mr. al-Ghais (cited by Reuters), "OPEC and OPEC+ actions are not aimed at affecting oil prices, but solely at market interests and providing the industry with investment."

It is incorrect to single out the rise in oil prices as one of the issues affecting the world economy, he said. The COVID-19 pandemic's aftermath, monetary policy, equities movements, trading algorithms, commodity options advisers, strategic stock issues, and geopolitics all have an impact on the markets. The OPEC Secretary General noted that these are only a few of the contributing reasons.

source: reuters.com