The Global Oil Market is Controlled by Four Factors, According to Iraq's Oil Minister

 

The Ministry of Oil declared at the start of the week that four components influence the global oil market’s stability while clearing up OPEC and OPEC Plus’ part in it.

Assem Jihad, ministry spokesman, stated to Iraqi News Agency and Economy News that “Global oil markets are affected by political, security, geopolitical, and health influences alike—just as we have seen with the spread of COVID-19.” He noted that “Oil markets are fragile and subject to changes due to these conditions; therefore, regularizing them faces plenty of issues.”

Jihad commented that, "by working together, OPEC and OPEC Plus are striving to keep the oil markets balanced and stable in order to prevent any collapse of prices.”

He went on to emphasize that “whenever there is an increase in supply, OPEC Plus takes the appropriate actions to reduce production, thereby creating a stabilizing factor for the market. This will have a positive effect on oil prices.”

According to Jihad, “when the global economy regains its footing, this positivity will be reflected in the stability of global oil markets." He then noted that, although they cannot control security or geopolitical conditions around the world,

OPEC and OPEC Plus have their eyes on supply and demand closely. They are trying to adjust as needed.