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OPEC oil price forecast 2022: OPEC Secretary-General says OPEC is not to blame for rising oil prices

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OPEC oil price chart

What OPEC oil price forecast for 2022 can be made? OPEC is not to blame for the sharp rise in energy prices; the reason for this is the chronic underfunding of the industry, the organization’s new secretary general, Haitham Al Ghais, told CNBC.

He also called OPEC’s relationship with Russia “strong,” according to a transcript of the video interview posted on CNBC’s website.

“We’re very optimistic about oil demand this year, I personally am pretty optimistic – I think there will still be a pretty big demand from China, shifting consumers of gas, whose prices have skyrocketed, to oil. We’ve seen a large number of consumers in Europe switching to oil recently, which is unexpected, not to mention other parts of the world – Asia, the Middle East,” al-Qais said.

The underestimated factor, he estimated, is a rebound in air travel, which would bring oil demand back to pre-crisis levels. OPEC estimates that demand will return to pre-void levels at the end of the year, the OPEC Secretary-General reminded.

OPEC oil price chart – what happens next?

Al Keys rejected accusations toward OPEC about inflation and rising energy prices. “No, absolutely not. First, everything is relative; second, OPEC is doing its part. We have been increasing production according to what we see and a gradual mechanism that has been very transparent. We work with other countries in the OPEC+ alliance, which produces about 46% of the world’s oil in a very transparent way-the market follows our meetings, knows the methodology. We are doing everything we can to bring the market back to equilibrium, but there are economic factors that are really beyond OPEC’s control,” he added.

The OPEC Secretary-General said that he intends to intensify dialog with all interested parties, politicians, in particular, he is meeting with representatives of the European Union next week.

“OPEC has been knocking on the door for a long time for several years, and we have been waiting for someone to open that door and let us in. Once that happens, it will be in everyone’s best interest because there has to be an understanding that OPEC has nothing to do with rising prices. There are other factors besides OPEC that are really behind the spike in gas and oil prices that we are seeing. And again, I think in a nutshell, to me it’s underinvestment – chronic underinvestment,” he added.

“It’s a harsh reality that people have to wake up to and politicians have to realize. Once that’s realized, I think we can start thinking about a solution here. And the solution is very clear. OPEC has a solution: invest, invest, invest,” Al Qais said.

Earlier we reported on what’s going on in the commodities market.

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Bloomberg: UAE to boost oil production beyond plan by 2025

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UAE to boost oil production

UAE to boost oil production. One of Russia’s main competitors for oil exports plans to reach five million barrels per day by 2025. The Middle Eastern country was initially expected to reach this level only by 2030, Bloomberg reported, citing sources.

“Energy concern Abu Dhabi National Oil Co. (Adnoc), which produces almost all of the UAE’s oil, wants to be able to produce 5 million barrels a day by 2025. The company planned to reach such a level only by 2030,” – says the material.

But a crude oil production boost will be difficult without additional financing for expenses for the project. Adnoc explained the acceleration of production increase by the policy of the leading countries of the world on accelerated energy transition to renewable energy sources (RES).

“As we embrace the energy transition and focus our business on the future, we will continue to explore potential opportunities that can further add value, free up capital and improve profitability,” the Arab oil company said.

To realize the goal, Adnoc has asked international companies that are partners in its oil fields to increase long-term crude production by 10% or more, sources said. In the case of positive results of the negotiations, the UAE will be able to significantly increase the volume of oil production by 2025, concludes Bloomberg.

On September 19, the Times of India, citing sources in the Indian Ministry of Commerce, reported that the Asian country has saved since February 2022, $439.7 million on imports from Russia of oil at a discount. A total of about 62.5 million barrels of Russian crude were purchased by Indian state and private companies over the last six months. Moreover, volumes of imports have increased many times over as compared to 2021.

Earlier, we reported that Nigeria stopped benefiting from the sale of Nigerian oil due to the lack of dollars.

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FT: Nigeria stopped benefiting from Nigeria crude oil sales due to lack of dollars

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nigeria crude oil sales

Nigeria’s crude oil sales used to grow steadily. But now the country, which is considered one of the world’s largest oil exporters, is facing a crisis. The country is short of dollars, and the factor of “massive theft” has only exacerbated the problems of the African state, reports the Financial Times.

“Since the beginning of the year, Nigeria’s foreign exchange reserves have fallen by 5%, to $38 billion. Restrictions on the purchase of dollars and the resulting deficit has led to the emergence of a black currency market. $1 is worth 420 naira at the official exchange rate and 700 naira on the black market,” the paper said.

Because of increasing corruption in the country, Nigeria, the world’s tenth largest oil exporter, can no longer increase production of crude oil. Nigerian crude oil buyers are not happy with this fact. The African state exports a little more than half of the established OPEC quota – 1.1 million barrels per day, instead of the required 1.8 million.

Despite all the difficulties going on in Nigeria’s economy, Timipre Silva, the African country’s Minister of State for Petroleum, announced plans to increase liquefied natural gas (LNG) exports to Europe by the coming winter. According to him, to realize this goal, it is necessary to improve safety in Nigeria’s fields and infrastructure.

Earlier we reported that coffee stocks in Brazil in six months will approach a record low level

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Coffee exporters in Brazil: coffee stocks in Brazil in six months will approach a record low level

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coffee exporters in Brazil

Coffee exporters in Brazil said that coffee stocks in the largest coffee-producing country in the world – Brazil – in six months will fall to a record low level. This was written by Bloomberg agency about the statement of the president of the National Council of Brazilian Coffee Silas Brasileiro.

According to his forecast, stocks of coffee in Brazil’s coffee supply companies by March will drop to 7 million bags, whereas analysts consider a comfortable level of 9-12 million bags of 60 kg each.

Cecafe Exporters Group board member Nelson Carvallaish said the country’s coffee stocks are so small that even if next year’s crop is good, Brazil will barely have enough coffee to meet demand.” “We just need rain,” he concluded.

In August, The Wall Street Journal wrote that the price of coffee could rise seriously by the end of 2022 because of Brazil’s poor harvest. 

Earlier we reported that aluminum production in China in August reached a record 3.51 million tons.



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