OPEC doing important work of balancing oil markets

OPEC which stands for Organization of the Petroleum Exporting Countries is an intergovernmental organization formed in 1960. It consists of 13 oil producing nations that aims to manage the supply of oil in international markets to garner stable oil prices. The Emirati energy minister recently praised OPEC for the work it is doing in stabilizing global oil markets.

He said that OPEC has an important role and responsibility in trying to achieve a balance between supply and demand in oil markets. When there is too much supply compared to demand, prices fall which affects both oil producing and consuming nations. On the other hand, when demand outpaces supply prices increase sharply which hurts economies. 

OPEC tries to avoid both extremes through cutting or increasing overall production levels of member countries This helps maintain reasonable and steady oil prices that benefit consumers as well as support economies and investment in the oil industry Without such coordination volatility in oil prices can impact global trade and financial markets too.

The energy minister acknowledged that balancing markets is not an easy task given various external factors that can affect supply and demand Geopolitical uncertainties economic performance of major nations and demand projections have to be constantly monitored and assessed for appropriate policy decisions. 

However he said that overall OPEC has done a noble and commendable job over the decades in bringing stability to oil markets during periods of turbulences This important role played by the organization helps smooth international energy trade and pricing.

While volatility cannot be totally avoided well coordinated efforts by OPEC to manage supplies helps curb extremes and supports reasonable and predictable oil price levels This balanced approach benefits both producers and consumers in the long run.