Oil cartel leader warns of prolonged high prices

Oil cartel leader warns of prolonged high prices

Image source, Getty Images

By Faarea Masud

Business reporter

The price of oil will continue to stay elevated as demand for energy increases, says the secretary general of Opec+.

Opec+ is a group of 23 oil-exporting countries which decides how much crude oil to sell on the world market.

"We see demand growing about 2.4 million barrels a day," Haitham Al Ghais told the BBC.

Saudi Arabia said it would be cutting its production of crude oil by a million barrels a day to boost prices.

The International Energy Agency (IEA) said the decision by Saudi Arabia and Russia - two major oil producers and members of Opec+ - to cut production could cause a "significant supply shortfall" by the end of this year.

Mr Al Ghais said: "This is a voluntary decision taken by two sovereign nations, Saudi Arabia and Russia. This decision can be described as precautionary or pre-emptive because of uncertainties".

Image caption,

Haitham Al Ghais said Opec was taking pre-emptive, precautionary measures by cutting oil production

Following Russia's invasion of Ukraine in February 2022, oil prices soared, hitting more than $120 a barrel in June last year. They fell back to a little above $70 a barrel in May this year, but have steadily risen since