Planned release of oil from strategic reserves reinforces the necessity of diligent market monitoring to avoid market imbalance: OPEC

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Biznextindia : The planned release of millions of barrels of oil by top oil consuming nations from their strategic reserves has reinforced the necessity of diligent market monitoring to avoid market imbalance, said a top OPEC member during the 182th meeting of OPEC conference.

“The planned release of oil from a number of strategic reserves reinforces to the necessity of diligent market monitoring to avoid a return to market imbalance.  And we need to pay close attention to downside risks associated with inflation spikes, rising debt levels and supply-chain disruptions” said Dr Diamantino Pedro Azevedo, Angola’s Minister of Mineral Resources and Petroleum and President of the OPEC Conference.

“In these uncertain times, it is imperative that we – together with the non-OPEC countries in the DoC – remain prudent in our approach and prepared to be proactive as market conditions warrant” he added.

In a coordinated effort, the world’s major oil consumer countries including USA, China, India, Britain and Japan last month decided to release millions of barrels of oil from their strategic oil reserves.

On UN climate negotiations

The OPEC also reacted cautiously on the outcomes of the UN climate negotiations in Glasgow last month, saying that it has further amplified the challenges and uncertainties the oil industry is facing, but the organization is firmly commited to this global cooperation.

“The discussions leading up to and dominating the UN climate negotiations in Glasgow last month further amplified the challenges and uncertainties facing our industry. The potential adverse economic impacts on our Member Countries could be very significant.  Yet we remain firmly committed to global cooperation on climate issues, and dedicated to finding inclusive solutions to support post-pandemic social and economic resilience. With global primary energy demand expected to increase by 28% by 2045, this is no time to create energy pariahs, nor to side-line leading energy-exporting countries like ours” said Dr Azevedo.

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