According to Reuters, Iraqi Oil Minister Ihsan Abdul Jabbar Ismaael warned on Wednesday that due to low global commercial supplies, prices could exceed $100 per barrel in the first half of 2022.
At the same time, the minister told reporters in Baghdad that the OPEC+ group was looking into measures to balance the market because the alliance does not want oil prices to rise above certain “acceptable” levels. According to the Iraqi oil minister, who was quoted by Reuters, an “acceptable” long-term price range for oil would be between $75 and $85 a barrel.”
The OPEC+ group is “at the same time against further boosting global oil inventories, as they could lead to the collapse of oil markets,” said the minister of OPEC’s second-largest oil producer.
Jabbar Ismaael claimed at the end of last month that OPEC+ was working to keep oil prices around $70 per barrel. The ministry hoped that oil prices would remain over $65 per barrel. Oil has gained $10 per barrel since the minister stated that the group’s goal was to keep prices around $70.
While the Iraqi oil minister does not rule out a $100 oil price in the first or second quarter of 2022, he warned the market earlier this month that a three-digit oil price would be unsustainable for the OPEC+ coalition, which strives for stable and predictable markets.
Prices have risen since the end of September, owing to resurgent global demand and a lacklustre supply response from suppliers such as OPEC+ and the United States’ shale sector. The worldwide energy crisis, as well as record-high natural gas and coal costs, have increased demand for oil products, driving up projections for oil demand in the winter months.