Iraqi minister says high oil prices, if they last, could speed the shift to E.V.s.

HOUSTON — Even with boycotts upending provides from Russia, main oil-producing international locations are prone to maintain the road on output for now, protecting costs excessive and reaping the advantages. However that course might show detrimental in the long term.

That’s the view of Oil Minister Ihsan Abdul Jabbar of Iraq, which is a member of the Group of the Petroleum Exporting International locations. He says OPEC Plus — a bunch of 23 nations together with Russia, the world’s No. 3 producer — will stick with plans to extend output by a modest 400,000 barrels a day subsequent month.

However in an interview Wednesday, he stated Iraq and different Center Jap producers have been involved that top costs might decrease demand and even hasten the transition to electrical automobiles, lowering reliance on oil.

“We’re completely satisfied within the quick time period, however not completely satisfied if this lasts,” stated Mr. Abdul Jabbar, who was in Houston to attend CERAWeek, an vitality convention.

Even OPEC’s present course might change by Might if oil costs maintain rising due to Russia’s invasion of Ukraine, he stated. “OPEC will stick with this system,” he stated. “If there are actual sanctions on Russian oil, OPEC will make the correct determination — if there are actual shortages.”

He stated that neither American officers nor anybody else might drive OPEC’s hand, nonetheless, and that its choices can be based mostly on the recommendation of its analysts. “Nobody can persuade,” he stated. “OPEC listens to analysis studies.”

Mr. Abdul Jabbar stated that there had been little vitality funding within the Persian Gulf area during the last two years due to the coronavirus pandemic and low world demand and that it could take time to extend manufacturing considerably. He estimated that Iraq, one of many world’s most necessary producers, might handle a rise of solely 40,000 barrels a day, a drop in a worldwide market that consumes 100 million barrels a day.