Oil price volatility is undesirable, says OPEC chief

The Organization of the Petroleum Exporting Countries (OPEC) prefers a more stable price environment, amid the undesirable volatility in the crude market, Suhail Al-Mazrouei, OPEC President, told Reuters Wednesday.

“Fluctuation is not good and we do not like to see lots of fluctuation in the prices .. The fluctuations will continue as long as there is no long-term plan for production,” Al-Mazrouei added.

On the sidelines of a Canada-United Arab Emirates Business Council event in Calgary, Mazrouei referred to the pans being worked on by the organization and other mega producers to build a spare capacity that would protect the market from unexpected outages.

Global oil prices dropped, with benchmark Brent futures falling 6.92 percent, to mark the steepest one-day drop in two years, following Libya reopen of four oil export terminals on Wednesday.

In February, Libyan oil output decreased to 527,000 barrels per day (bpd), down from1.28 million bpd, following port closures in late June.

OPEC President highlighted that his presence in Canada was aimed at boosting investment in oil exploration and production and expressed his confidence about having enough spare capacity to meet OPEC and non-OPEC agreed target.

In June, OPEC and non-OPEC members agreed on raising the oil supply by returning to 100 percent compliance with previously agreed output cuts, according to data compiled by Argaam.