Market forces responsible for low oil prices, says Barkindo – The Guardian

OPEC

The new Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Mohammed Barkindo, has described the fall in crude oil market from above $100 per barrel to less than $50 a barrel as price correction.

Barkindo said in the latest OPEC bulletin that crude oil prices at $100 to $140 was unsustainable, adding that it was only normal that market forces were helping to normalise the prices.

According to Barkindo, “it is quite obvious; almost elementary to all commentators that what we saw prior to the correction in 2014, when oil sold for as high as over $100 a barrel and at a time $140 a barrel was something that was abnormal.”

Meanwhile, the International Energy Agency (IEA) said yesterday, that rebalancing the oil market might take longer than expected.Barkindo said that there are certain structural changes that have gradually been taking place in the global economy and impacting the energy scene, particularly oil and gas.

“The combination of all those factors and a robust economic growth led to the skyrocketing of prices that we saw, which was unsustainable and, at the end of the day, could not have been positive to the global economy.

“Now what we have been seeing since 2014 is a correction of that. The quest and efforts of OPEC in stabilising the market at various times is something that is ongoing, it is a continuous business.“The concept of fair price, or the equilibrium price that will be fair to both the consumers and producers, is a task that has been carried on by OPEC throughout its existence. And from 1986, ot