Top oil consumers express discomfort over rising oil prices, says OPEC’s Barkindo
MOH AM MED BAR KINDO, THE SEC RETARY general of the Organisation of Petroleum Exporting Countries (OPEC), has said that the world’s top oil consumers have expressed their discomfort over rising current oil prices.
He said a letter from India, one of the world’s top oil importers, recently expressed “discomfort” over the current oil market.
“Some of our very powerful customers seem to be he said noting that the letter expressed “some discomfort with the evolution of the (oil) market.
“As one of our major consuming countries, of which we have an official energy dialogue, it was also a concern for us getting this feedback from India,” he noted.
Some market watchers believe current oil prices of around $85 per barrel are starting to curb oil demand growth, particularly in emerging economies.
He, however, allayed this fear and said that OPEC producers will ensure that the market would experience no supply shortages. are equally concerned with the response of
We are very concerned, not just about spare capacity per se, but you have to look at spare capacity within the context of the sharp reduction in investments
the consuming countries as a result of current volatility and market conditions that impacts their demand profile... We will continue to do our utmost to ensure there is no shortage,” he said.
“I’m confident, hearing from our largest producers, that they are ready, willing, and capable to ensure that this market remains well supplied.” Barkindo added.
OPEC’s top producer, Saudi Arabia, last week said it believes it can pump a further 1.3 million barrels per day if required to meet a shortfall from Iran and Venezuela.
He also said that OPEC producers are “very concerned” about current spare production capacity in the industry but said the concerns are related to the slump in upstream spending since the 2014 oil prices slump.
“We are very concerned, not just about spare capacity per se, but you have to look at spare capacity within the context of the sharp reduction in investments,” he said.