According to Saudi Arabia's energy minister, the stability of oil prices compared to gas and coal underlines that OPEC+ is doing a good job of balancing supply and demand.
The Energy Minister Prince Abdulaziz bin Salman said on Thursday that although the oil prices surged to a three-year high of over $ 80 a barrel, the growth was nothing compared to the volatility of gas and coal prices. He reiterated that the OPEC+ cartel, led by Riyadh and Moscow, should stick to a gradual increase in production, despite calls from many traders and even the White House to act faster.
Since the end of June, gas futures in Europe and Asia have increased by more than 150%.
In comparison, Brent crude oil's price has risen by only 12%.
The Organization of the Petroleum Exporting Countries and its allies have been under pressure from major consumers to accelerate the pace of increasing their supplies. Later, the calls became even more active, as rising gas prices forced some electricity producers to switch to oil.
The Minister of Energy of the United Arab Emirates, Suhail Al Mazroui, supported the comments of the other PMs, saying that the oil market has become much clearer due to the position of OPEC+ than the gas market. In addition, there is also no danger of overheating the market.
Prince Abdulaziz said that there is a high probability of an oversupply of oil next year.
Moreover, some traders from Wall Street said that global oil demand will fall below supply around the beginning of 2022. According to JPMorgan Chase & Co, the daily balance will change from a supply deficit of about 1.5 million barrels now to a surplus of almost 2 million barrels by March.