Neither OPEC nor the OPEC+ alliance focuses on a certain price of oil, but only on the market and investment. Therefore, it is a mistake to “blame” oil quotes for rising inflation, reads a statement by OPEC Secretary General Haytham al-Gais in response to criticism from the International Energy Agency (IEA).
OPEC and OPEC+ are not focused on oil prices, focusing solely on market fundamentals and securing vital investment in the oil industry that the world desperately needs, the statement said.
The secretary general stressed that blaming oil for inflation is erroneous and technically incorrect, since there are many other factors that cause inflation.
Other energy markets have been much more volatile and oil markets less, mainly due to the stabilizing role of OPEC and the OPEC+ alliance, he added.
Earlier in April, the IEA in its monthly report reminded that a number of OPEC+ countries, including Saudi Arabia, announced a voluntary reduction in production from May to the end of the year by 1.16 million barrels per day (in excess of current quotas).
The IEA noted that a substantial deficit was projected in the second half of 2023, and new cuts could exacerbate it and drive up prices, while inflation is already hitting vulnerable consumers, especially in emerging and developing economies.
https://report.az/en/energy/opec-responds-to-criticism-from-iea/