Oil prices rose on Tuesday on signs Iranian oil exports this month have fallen from September ahead of US sanctions against Tehran that are set to start in November.
International benchmark Brent crude for December delivery rose 27 cents, or 0.33 percent, to $81.05 per barrel by 0325 GMT.
In an interaction with CNBC-TV18, Mohammed Barkindo, secretary general of the Organisation of the Petroleum Exporting Countries (OPEC), said oil will continue to play critical role in energy mix in the foreseeable future.
“We took stock of the implementation of supply adjustments for 18 months since January of last year and came to the conclusion that there was need for us to change course because to restore balance to the oil market is a continuous strive of oil producers,” said Barkindo.
According to him, factors outside producers control had led to temporary imbalance.
“I think the severity of the downturn also had a role to play in this. So from July we started to relax supply in order to bring down the conformity from 147 percent to 100 percent,” added Barkindo.
Talking about the oil industry, he said oil and gas will contribute nearly 50 percent to energy basket.