OPEC+ is an alliance of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia.
According to Reuters, Al-Ghais, Kuwait’s former OPEC governor, will head his first OPEC+ meeting on Aug. 3, in which the group will consider keeping oil output unchanged for September, despite calls from the United States for more supply.
AL-Ghais told Alrai “OPEC doesn’t control oil prices, but it practices what is called tuning the markets in terms of supply and demand,” describing the current state of the oil market as “very volatile and turbulent.”
He added about the recent hikes in oil prices, “As for me, I still stress that the recent rise in oil prices is not only related to the developments between Russia and Ukraine.”
“All the data confirm that prices began to rise gradually and cumulatively, and before the outbreak of the Russian-Ukrainian developments, due to the prevailing perception in the markets that there is a shortage of spare production capacity, which has become confined to a few and limited countries,” al-Ghais said.
Replying to a question about the factors that will affect oil prices by the end of the year, al-Ghais said, “In my view, the most important factor will be the continued lack of investments in the field of drilling, exploration, and production.”
“This will push prices in an upward direction, but we cannot determine the level they will reach.”