OPEC caution signs of oil surplus, allegations "unfair", why the U.S. is not increasing its production?
OPEC Chief said on Tuesday that the organisation is seeing signs of an oil supply surplus starting next month; adding that the uncertainty makes it a further case why the organisation must keep their hands on the output.
"The surplus is already beginning in December," OPEC Secretary General Mohammad Barkindo told reporters on the sidelines of ADIPEC in Abu Dhabi. He said that "these are signals that we have to be very, very careful."
Barkindo is speaking as the U.S. administration is facing and in return putting pressure on some member states to increase their output in order for the price to decrease. OPEC and its allies will be gradually increasing their output to 400,000 barrels per day starting December. Energy ministers of the UAE and Oman on Monday said that the group will not increase the output beyond what has been agreed on.
The Secretary General told reporters“All this uncertainty further buttresses our commitment that we keep our hands firmly on the steering wheel.”
Speaking on Tuesday during a panel at the energy conference, Suhail Al Mazrouei, UAE's Minister of Energy and Infrastructure on OPEC being called a cartel said it was “unfair”. The minister said that “without this group that acted like a central bank or better, we would have had chaos in the market.”
Meanwhile IHS Market Vice Chairman, Daniel Yergin, said during an interview at the conference that the US. which is the world’s largest oil producer should focus on increasing its production.
“U.S. production, could be 800,000 barrels per day much of that is from Shale,’ He said.
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