OPEC's Barkindo: Industry facing huge challenges on multiple fronts
|The energy sector is facing huge challenges on multiple fronts, OPEC Secretary-General Mohammad Barkindo said on Tuesday and added that the oil and gas industries are "under siege," as reported by Reuters.
"Years of underinvestment in the oil sector help explain market tightness in OPEC and outside OPEC," Barkindo further elaborated. "Venezuelan and Iranian oil is held hostage by geopolitics."
Additional takeaways
"Refining capacity in OECD countries declined by 3.3% globally in 2021."
"Regrettably, we are seeing global energy cooperation being fragmented."
"Efforts to unwisely divest from hydrocarbons are becoming more pronounced lately."
"Inopportune remarks to discourage exploration in hydrocarbons will cause a more pronounced energy crisis."
Market reaction
Crude oil prices remain under pressure following these comments and the barrel of West Texas Intermediate (WTI) was last seen trading at $108,15, where it was down 2.15% on a daily basis.
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