OPEC tells the IMF that the price of oil is rising mainly because of geopolitics


The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured on the wall of OPEC’s new headquarters in Vienna March 16, 2010. REUTERS/Heinz-Peter Bader/File Photo

Join now for FREE unlimited access to Reuters.com

Register

LONDON, April 21 (Reuters) – OPEC told the International Monetary Fund’s governing board on Thursday that soaring oil prices were largely due to the Ukraine crisis, in the latest signal that the producer group would take no action. extra to increase supply.

In a statement to the International Monetary and Financial Committee (IMFC) seen by Reuters, OPEC said the price of global benchmark Brent crude averaged nearly $98 a barrel in the first quarter, up around $18 compared to the last three months of 2021.

“Oil prices have risen, particularly in March this year … mainly due to escalating geopolitical tensions in Eastern Europe and concerns that this could lead to major oil supply shortages, in the amid trade upheaval,” OPEC told the IMF.

Join now for FREE unlimited access to Reuters.com

Register

The IMFC participates in the spring meetings of the International Monetary Fund (IMF) and the Board of Governors of the World Bank.

OPEC, which attended an IMFC meeting last year, resisted calls from the United States and the European Union to pump more oil to cool prices, which hit a 14-hour high. years above $139 last month after Washington and Brussels imposed sanctions. on Moscow for its invasion of Ukraine.

OPEC+, which includes OPEC and other producers including Russia, will increase production by around 432,000 barrels per day in May, as part of a gradual unwinding of production cuts made during the worst of the year. COVID-19 pandemic.

OPEC said OPEC+ has shown its commitment to ensuring oil supply and demand fundamentals are in balance during the Ukraine crisis to support the global economy.

OPEC also highlighted the short-term negative impact of the Ukraine crisis and the ongoing pandemic, adding: “The sharp rise in commodity prices, combined with persistent supply chain bottlenecks and to the logistical constraints linked to COVID-19, is fueling already high global inflation”.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Alex Lawler, editing by Alexander Smith

Our standards: The Thomson Reuters Trust Principles.

Previous Trade restrictions limit food, energy and fertilizer production–WB
Next Build new dams to meet energy supply and demand gap