THE Organisation of the Petroleum Exporting Countries (OPEC) and Russia are not competing against each other but are both cooperating, OPEC secretary-general Haitham Al Ghais said yesterday.

“We are not competing with Russia and Russia is not competing with us. We are partners… we cooperate with each other,” Sputnik quoted Haitham as telling Al Arabiya broadcaster when asked about concerns regarding discounts on Russian oil, adding that “the oil market is big and will accommodate everyone”. 

The secretary-general noted that Russia and the organisation are constantly engaged in dialogue, adding that the redirection of Russian oil from United States to Asian markets was a natural response to sanctions.

Haitham also said global oil markets are experiencing significant price fluctuations due to a lack of investments and disputes over the use of oil output reserves, noting that investments in the upstream sector “decreased from US$600 million (RM2.67 billion) to US$450 million”. 

On Wednesday, the OPEC+ group of countries decided to increase oil production by 100,000 barrels per day beginning in September. The secretary-general said the decision was aimed at testing the reaction of oil markets and it can be revised. – Bernama, August 5, 2022.