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8/17, 11:45 AM (Source: TeleTrader)
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Energy underinvestment behind inflation - OPEC head

OPEC Secretary-General Haitham Al Ghais argued on Wednesday that the organization shouldn't be blamed for the soaring prices of energy products, claiming inflation arose due to underinvestment in the industry. "OPEC is not behind this price increase. 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," the recently elected official told CNBC.

Kuwait's Al Ghais replaced Mohammad Barkindo at OPEC's leadership last month, who passed away days before he was supposed to step down from the position. OPEC hiked oil output by only 100,000 barrels per day earlier this month following urges from the Biden administration to counter surging prices. Commenting on OPEC's relation with Russia, which participates in the expanded producer meetings known as OPEC+, Al Ghais marked it as "solid" and confirmed he trusts Moscow in terms of market stabilization policies.

Baha Breaking News (BBN) / ND