RIYADH: The secretary-general of the Organization of the Petroleum Exporting Countries, Haitham Al-Ghais, said that the influential group of producers is not responsible for rising inflation.
He also pointed to the chronic underinvestment in the oil and gas industry.
“OPEC is not behind this price increase,” Al-Ghais told CNBC.
He added: “There are other factors beyond OPEC that are really behind the spike we have seen in gas (and) in oil. And again, I think in a nutshell, for me, it is underinvestment — chronic underinvestment.”
“This is the harsh reality that people have to wake up to, and policymakers have to wake up to. Once that is realized, I think then we can start to think of a solution here. And the solution is very clear. OPEC has a solution: invest, invest, invest,” Al-Ghais said.
Al-Ghais’ comments come shortly after the oil producers’ group of OPEC and non-OPEC partners, surprised market participants at its Aug. 3 meeting by announcing plans to add only 100,000 barrels per day from next month.