An energy consultant at Hawk Energy, Khaled Al-Awadi, said that the “OPEC +” decision to cut Oil production by 100,000 barrels per dayis a message to the markets that the OPEC alliance is ready at any time to surprise the market, which has not happened for more than a year.
Al-Awadi added in an interview with Al-Arabiya, today, Tuesday, that with the current market fluctuations, “OPEC +” had to move in this way, and after increasing production by 100,000 barrels per day the previous month, it decided this month to reduce production.
Khaled Al-Awadi said that “OPEC +” says that it is ready to intervene to maintain demand in the oil market, and that it intervenes when demand decreases and prices fluctuate to achieve its main goal, which is to work a balance in the market.
An energy consultant at Hawk Energy added that oil prices since the beginning of this year so far are above $105 a barrel and will end the year with prices above $100 a barrel, which is what “OPEC +” seeks, while the alliance does not interfere to raise prices, but rather intervenes to balance demand and supply.
Khaled Al-Awadi attributed the price hike at the end of the year to fluctuations in gas prices in Europe and the sanctions imposed on major oil producers in the world such as Russia.
He explained that Russia’s revenues from oil and gas are very good, even if the quantities decrease, because the current prices of gas are multiplied by 4 times, and oil has doubled its price in the past periods, which benefits Russia’s oil income.
He pointed out that setting a ceiling for Russian oil and gas made Russia act as a reaction to the lack of wisdom on the part of Europe by setting a ceiling on prices.
The Organization of the Petroleum Exporting Countries and its allies, led by Russia, agreed on Monday to a small cut in crude production of 100,000 barrels per day, and also said they agreed to ask their president to call a meeting at any time to address market conditions “if necessary.”