• About
  • Advertise
  • Privacy Policy
  • Contact
Thursday, February 2, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

OPEC+ taking ‘gradual phased approach’ to raise oil output

October 14, 2021
Stephen KotochiebyStephen Kotochie
in Around the Globe
0
oil output

Prince Abdulaziz, Saudi energy minister

OPEC and its allies are taking a ‘gradual phased approach’ to raise crude oil output after the pandemic lowered demand by some 25 per cent, Saudi Energy Minister Prince Abdulaziz noted.

Crude oil prices have risen to a three-year high above US$80 per barrel as demand for crude has increased more aggressively.

OPEC+ has been under pressure from major consumers like the US to increase the quantum of their supply hugely. The calls have become louder since the surge in gas prices caused some power producers to switch to oil.

RelatedPosts

EBRD Provides Record Volume of Investments to Romania Since 2009 in 2022

Hipkins Sworn In As New Zealand’s Prime Minister

S&P Global Projects ‘Negative Outlook’ For Traditional Asset Managers

“We want to make sure that we reduce these excess capacities that we have developed as a result of COVID. We want a gradual phase approach,” Prince Abdulaziz said.

f7f0d31d 76c5 453b b04a
Prince Abdulaziz, Saudi Energy Minister

“We believe we’ll have a challenging year in 2022 if we don’t attend to this situation immaculately with the same resolution. We keep telling people we should look way beyond the tip of our noses.”

Prince Abdulaziz, Saudi Energy Minister
Increasing Oil Output to be a bigger problem later

The OPEC+ alliance has agreed to increase production by 400,000b/d through the end of 2022. This is geared towards eliminating the historic cuts it implemented through the pandemic last year.

Despite this projected rise in output, the International Energy Agency (IEA) has warned that even this could lead to a significant oversupply by mid-2022, a case that Prince Abdulaziz acknowledged in advocating a cautious approach to supply management.

The United Arab Emirates’ Energy Minister Suhail Al-Mazrouei echoed OPEC’s resolution, saying there was no danger of the oil market overheating because of OPEC+’s stance. He told the Russian conference that the OPEC+ needs to strike balance between encouraging investment in the sector and not increasing production too much.

suhail
Suhail Al-Mazrouei, United Arab Emirates’ Energy Minister

“You need to trust us because we have enough experience dealing with different cycles. Reducing or increasing the production suddenly by a large amount is not going to help. It will not allow investors to invest. You will solve the problem in the short term but you will have a bigger problem later on.” Oil at $100/b is “quite possible.”

Suhail Al-Mazrouei
IEA’s Projections of OPEC+ oil output

The IEA said from September through end-2021, global output is set to rise to 2.7 million b/d with OPEC+ accounting for 1.5 million b/d. This would still leave the OPEC+ crude supply 700,000 b/d short of the global requirement in the fourth quarter.

However, the IEA indicated that the picture could change quickly, lending support to OPEC+ sticking to its current plan of bringing back 400,000 b/d each month.

“If OPEC+ continues to unwind its cuts, the bloc could pump 800,000 b/d above the call on its crude in Q1 2022. [Supposing] Iran remains under sanctions… by Q2 2022, OPEC+ crude oil output could rise to 2.1 million b/d above the call,”

IEA

The Saudi Prince said OPEC+ has been “attentive to the market” with the focus on ensuring energy security while also considering climate change.

He noted while oil prices have risen by 29 per cent, the increase has been nothing compared to price volatilities seen with gas (500%) and coal prices (300%).

“We have done a remarkable job. Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC has done.”

Prince Abdulaziz

He further mentioned there is potential for “a serious energy crisis this winter” emanating from “a lack of stocks, lack of investments and actual lack of coordination of buyers and sellers.”

READ ALSO: Ghana to Grow at 4.7% In 2021– IMF

Tags: crudecrude pricesoilOPEC+output

Related Posts

EBRD Provides Record Volume of Investments to Romania Since 2009 in 2022
Around the Globe

EBRD Provides Record Volume of Investments to Romania Since 2009 in 2022

January 27, 2023
Hipkins Sworn In As New Zealand’s Prime Minister
Around the Globe

Hipkins Sworn In As New Zealand’s Prime Minister

January 25, 2023
S&P Projects 'Negative Outlook’ For Traditional Asset Managers
Around the Globe

S&P Global Projects ‘Negative Outlook’ For Traditional Asset Managers

January 25, 2023
Ardern Makes Final Public Appearance As Prime Minister
Around the Globe

Ardern Makes Final Public Appearance As Prime Minister

January 25, 2023
New Zealand: Chris Hipkins Endorsed As Next Prime Minister
Around the Globe

New Zealand: Chris Hipkins Endorsed As Next Prime Minister

January 25, 2023
New Zealand: Education Minister To Become Next Prime Minister
Around the Globe

New Zealand: Education Minister To Become Next Prime Minister

January 25, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Athletics Kenya calls for speedy investigation into Tirop’s murder

Next Post

Apply GHS948 million in PSRL Account to Cushion Petroleum Consumers- ACEP

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Putin Commemorates Battle Of Stalingrad
Europe

Putin Commemorates Battle Of Stalingrad

by Comfort AmpomaaFebruary 2, 2023
Bryan Adams, Crafting Albums Amid Grammy Award Nomination
Entertainment

Bryan Adams, Crafting Albums Amid Grammy Award Nomination

by Esther Korantemaa OffeiFebruary 2, 2023
Shadrach Arloo’s Death: CCTV Camera At Westhills Mall Confirms He Was Confronted By Police
General News

Shadrach Arloo’s Death: CCTV Camera At Westhills Mall Confirms He Was Confronted By Police

by Emmanuel SarpongFebruary 2, 2023
Bugatti Sells Its Last Purely Gas-Powered Car for World Car Auction Record
Wheels

Bugatti Sells Its Last Purely Gas-Powered Car for World Car Auction Record

by Stephen M.CFebruary 2, 2023
Gold For Cash, Not Gold For Oil – Mr. Mercer Charges
Vaultz Business

Gold For Cash, Not Gold For Oil – Mr. Mercer

by Gifty BansahFebruary 2, 2023
AfDB Trains Its Regional Member Countries On Strategic And Operational Application Of Fragility Lens
Banking

AfDB Trains Its Regional Member Countries On Strategic And Operational Application Of Fragility Lens

by Priscilla Dziedzorm FiakpornuFebruary 2, 2023
Putin Commemorates Battle Of Stalingrad
Bryan Adams, Crafting Albums Amid Grammy Award Nomination
Shadrach Arloo’s Death: CCTV Camera At Westhills Mall Confirms He Was Confronted By Police
Bugatti Sells Its Last Purely Gas-Powered Car for World Car Auction Record
Gold For Cash, Not Gold For Oil – Mr. Mercer Charges
AfDB Trains Its Regional Member Countries On Strategic And Operational Application Of Fragility Lens
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In