OPEC Secretary General Mohammed Barkindo speaks at the opening ceremony of the Abu Dhabi International Petroleum Exhibition and Conference in Abu Dhabi November 11, 2019.
– | AFP | Getty Images
Mohammad Barkindo, OPEC Secretary General, said on Monday that in the face of soaring energy prices, the group’s mission remains to act as a reliable supplier.
He said the oil alliance “has no control over current events” and that now geopolitics has taken over and “dictates the pace of the market.”
Barkindo’s comments, made by S&P Global at CERAWeek, come amid energy industry unrest following Russia’s invasion of Ukraine, causing supply issues and pushing prices to record highs. Oil surged above $130 on Sunday night for the first time since 2008, and European natural gas prices are now trading at record highs.
However, OPEC and its allies, the group known as OPEC+, have decided to keep production at the same level.
The group last met on March 2, deciding to stick to the previously agreed schedule and increase production by 400,000 bpd in April. The move is part of the group cutting the nearly 10 million barrels a day it was taking off the market in April 2020 as the pandemic crippled demand for petroleum products.
Russia, a member of OPEC+, is one of the world’s largest oil producing countries and the second largest producer of natural gas in the world. Financial sanctions against the country by the US and Western allies have had indirect repercussions on the country’s energy complex, and officials have said more sanctions could be imposed.
Barkindo was not shy when describing the long-term consequences of the Russian invasion.
“We are facing what is likely to be a game changer in terms of energy transition,” he said.
He added that he was hesitant to appear on CERAWeek before saying that “it’s important to keep lines of communication open, especially in times of crisis like the one the world is facing today.”
“All we can do is stay the course,” he said.