The US President attributed the credit for this to the major consumers of oil after they joined his call for the use of oil reserves, and added: “I brought together other countries – India, Japan, the Republic of Korea and Britain – who all agreed to release additional oil from their reserves.”
The United States and its allies in India, Japan, China, England and Korea have been pressing exporters to increase production in a coordinated effort to mitigate rising fuel prices.
This comes at a time when the group of oil exporting countries and their allies (OPEC Plus) agreed, yesterday, to move forward with the planned increase in oil production next January, at a value of 400,000 barrels per day.
OPEC Plus said that it will keep its meeting open to follow the developments of the new “Omicron” mutator, and continue to monitor the market closely and make immediate adjustments if necessary.
After hours of fluctuations since yesterday, oil prices rose on Friday by more than 2%.
Brent crude futures rose 2.4 percent to $71.38 a barrel in morning trading, while US crude rose 2.39 percent to $68.09 a barrel.
Observers and experts in the field of oil believe that the decision of the United States and its allies regarding the use of strategic oil reserves in the long term will not affect the reduction of oil prices, and that the decision agreed upon by “OPEC Plus” will bring stability to the markets.
And the former Egyptian Minister of Petroleum, Abdullah Ghorab, believes that the “OPEC Plus” decision to stabilize the increase in oil production at 400,000 barrels “will bring relief in the markets, and price stability after a period of fluctuation and pressure, and this is the goal of it.”
Ghorab said in exclusive statements to Sky News Arabia, that what the major consuming countries have turned to and the decision of the “OPEC Plus” group is nothing more than “policies to control the market, with each side trying to control the market until a balance is achieved between consumers and producers.”
And regarding the impact of the decision to use the strategic reserve, he stressed that “the market does not respond to decisions in this way because it will remain stable nonetheless… All of these things are for the benefit of the consumers themselves who want to secure their needs for a certain period, and therefore I do not think that the market is currently affected by such decisions.”
He added: “To be affected by a decision taken by a country or group of countries and ignore the producers was from the past, today we see wars and various political problems, and prices do not respond in a long-term way.”
Ghorab explained that the decision of the United States and major consumers to use the strategic reserve paper comes to secure the internal needs of countries rather than influence global markets, so there will not be a significant rise or fall in prices, and I do not think that a country or entity has the ability to make a change or put pressure on a group “OPEC Plus.” The oil market is “bigger and deeper than that.”
In the eyes of the former Egyptian Minister of Petroleum, the fair price is in the range of $80 per barrel for the producer and the consumer.
He said: “If prices go down, producers will not be able to continue pumping their production, and there will be a shortage in the markets and consumers will suffer, and therefore there must be a fair price that meets the needs of the consumer and the requirements of the producer in order to continue to work.”
political game
In turn, the former Egyptian Minister of Petroleum, Osama Kamal, described the pressure exerted by the United States and its allies to reduce oil prices as a “political game.”
In exclusive statements to Sky News Arabia, Kamal said that the “OPEC Plus” group does not want to expand more than that in increasing production; Because prices did not deteriorate, especially after the great losses they incurred during the last two years in light of the Corona crisis, which reached prices to fall to about $ 37 a barrel.
He added, “Recently, the season of profit-taking for the OPEC Plus countries has begun, and as a result there is a tension between producers and consumers, and there has been pressure on the countries of the East in general to reduce oil and gas prices, and the increase in consumption in the winter has put Europe under additional pressure.”
Global oil prices collapsed by more than 10% last Friday, after a new strain of the Corona virus raised fears that the renewed imposition of general closures would threaten a global recovery in demand.
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