At the India Energy Week conference on Tuesday, OPEC Secretary General Haitham Al Ghais reiterated the organization’s commitment to a long-term perspective on global oil markets, aimed at achieving price stability. This statement comes amid ongoing pressure from U.S. President Donald Trump, who has urged OPEC to increase oil production to help lower prices.
Key Highlights:
Long-Term Strategy:
Al Ghais emphasized that OPEC’s decisions are based on thorough market analysis, focusing on supply and demand rather than political influences.
“We read the market. We analyze the supply, demand, away from political considerations, purely on technical, sound technical considerations,” he stated.
Production Policy:
OPEC+ has decided to maintain its production cuts until the end of March, citing concerns over global demand and increasing output from non-OPEC+ producers.
The group plans to gradually raise oil output starting in April as part of its long-term strategy.
Market Stability:
Al Ghais highlighted that oil prices have been relatively stable, attributing this stability to OPEC+’s clear decision-making processes.
“If you look at oil, also last year, oil was probably the least volatile commodity,” he noted, underscoring the effectiveness of OPEC+’s policies.
Political Context:
Since taking office again in January, Trump has expressed concerns that high oil prices are benefiting Russia amid its ongoing conflict in Ukraine.
OPEC+ has faced tensions with Trump during his previous administration (2016-2020), particularly when he demanded increased production to offset declines in Iranian supply due to U.S. sanctions.