The Organisation of Petroleum Exporting Countries (OPEC) says it will remain fully focused on maintaining a steady flow of energy supplies to consumers.

Mohammad Barkindo, OPEC secretary-general, stated this at the ongoing Nigeria Energy Forum (CERA Week 2022 Agenda) in Houston, Texas.

On Thursday, Mr Barkindo, in a Keynote address, said OPEC would remain focused on energy supplies despite the Russia-Ukraine war and the COVID-19 pandemic.

“Over the past 10 days or so, we have seen escalating geopolitical tensions, which are still unfolding and having adverse effects on energy markets across the world, resulting in heightened levels of volatility,” he noted. “The tensions have spooked investors and rattled commodity markets. We recognise this and are following developments very closely.”

Mr Barkindo noted that the COVID-19 pandemic taught OPEC the value of taking a prudent approach to oil supply and demand developments.

In terms of the market outlook for 2022, the secretary-general said there was optimism, but it was also cognisant that uncertainties remained and were further complicated by geopolitical developments and exceptional market volatility.

According to him, optimism is driven by the vaccine rollout, although this needs to filter through to more developing countries, improving mobility and the continuing economic recovery.

“Uncertainties relate to COVID-19 developments, although at present we see the impact of the Omicron variant on the oil market to be relatively mild and short-lived,” he explained. “Additionally, the geopolitical challenges already mentioned global supply chain issues, potential effects of rising inflation, consequent rise in interest rates, and knock-on impacts from challenges in gas, coal, electricity sectors need to be closely monitored.”

Speaking on the session’s theme, he said the unpredictability and volatility brought on by the pandemic had intensified discussions related to climate change and the energy transition.

This, Mr Barkindo said, was clear at the 2021 COP26 meeting in Glasgow, Scotland.

He listed a number of positive outcomes, such as the U.S. returning to the head of the multilateral table, all parties’ commitment to the implementation and full operationalisation of the Paris Agreement, and the announcement of the Glasgow Climate Pact.

(NAN)