– Says global oil industry under siege
Lagos — The Organization of the Petroleum Exporting Countries, OPEC is beginning to express fear regarding the Declaration of Corporation, DoC agreement as the crises between the Russian Federation and Ukraine deepens.
Mohammed Barkindo, Secretary-General for the Organization during an interview at the 2022 CERAWEEK which began in Houston on Monday, and ending today, said the world is facing a supply threat from Russia which is the largest supplier of oil and liquids in the world, and a partner in the DoC.
OPEC and its thirteen member countries had signed the cuts agreement with Russia in December 2016 as a way of boosting oil prices.
“The perception of the market is that trade, whether it materializes or not, is already reverberating through the market, and we have seen a surge in the market since the unfortunate incident started unfolding themselves”, he said, referring to the ongoing crises between Russia and Ukraine.
According to Barkindo, Russia’s 7 million barrels daily supply is missing in the chain, saying no other country in the world can meet up with such supply.
“There’s no capacity in the world at the moment that can replace 7 million barrels of exports assuming we are going to lose a volume of that region.
“The world is under siege,” he said.
The OPEC chief said the challenge is not about market share, but how to mitigate and overcome the crises.
Brent international climbed to $110.69 per barrel at 10:43 Nigerian Time Friday, gaining 1.51 or 1.38% after a previous closing of $109.18 on Thursday.
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