MOSCOW: Oil prices should be kept below $100 per barrel to avoid investments in “inefficient projects,” the boss of one of Russia’s leading oil companies has warned.
Vagit Alekperov, CEO of Lukoil — the country’s second largest producer — made the claim in an interview with Kommersant newspaper as he called for the OPEC+ alliance to keep oil prices between $65 and $75 per barrel.
Brent crude has mainly hovered in that bracket since April, briefly going above $75 per barrel in July before falling back in August.
OPEC+ last week resisted pressure by the US to increase oil production above a planned rise of 400,000 bpd.
Alekperov said: “I think that the OPEC+ alliance was created to last forever, not for just some period of time.”
He added: “I wouldn’t want to see oil above $100 a barrel again — this would lead to more investment in inefficient projects yielding low profits, and again lead to a collapse on the market.”
The current OPEC+ agreement means Russia is able to increase output at a rate of 500,000 bpd through the end of April 2022.
This will see Lukoil and other Russian oil producers add more barrels each month on a pro rata basis, as per each individual company’s respective share in the country's total crude output.
Russia’s output of liquid hydrocarbons should recover to the pre-COVID level by end of 1Q 2022, Kirill Bakhtin, oil and gas analyst at Moscow-based Sinara Financial Group told Arab News by phone.
“Currently the company has stopped up to 90,000 bpd of production per day, and we hope that this (volume of crude output that has been stopped) will be in demand by the market,” Alekperov said.
Alekperov warned the price of crude is set to change next year. He said: “After all, the oil price is being artificially regulated.
“We understand that due to production restrictions within OPEC+ the current price does not correspond to reality because a fairly large volume of production has been stopped.
"Objectively, the (real) price will become known after September 2022 when the OPEC+ agreement expires.”
OPEC+ should keep crude below $100, Russia oil boss tells Kommersant
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OPEC+ should keep crude below $100, Russia oil boss tells Kommersant
ESG sukuk set to exceed $70bn by 2026 end: Fitch
RIYADH: The global market for environmental, social and governance sukuk is on track to exceed $70 billion in outstanding value by the end of 2026, supported by refinancing needs, funding diversification and sustainability mandates, according to Fitch Ratings.
Momentum in ESG sukuk issuance is expected to continue as net-zero targets, the prospect of lower interest rates and oil prices, and expanding regulatory frameworks encourage issuers across emerging markets, the ratings agency said in a report published this month.
ESG sukuk are structured to finance environmentally and socially sustainable projects, including renewable energy, clean transportation and climate-resilient infrastructure.
Earlier this month, a separate report by S&P Global set out similar views, noting that ESG sukuk issuance is set to accelerate as Gulf Cooperation Council countries step up climate transition efforts and roll out incentives for sustainable practices.
Commenting on the Fitch report, Bashar Al-Natoor, global head of Islamic finance at the agency, said: “We expect ESG sukuk to maintain its solid momentum into 2026, supported by sustainability mandates, net-zero targets, new frameworks, robust demand, along with the upcoming Turkiye-hosted COP31.”
He added: “While evolving Shariah and ESG requirements, geopolitical tensions and greenwashing remain key risks, the credit profile is robust: 92 percent of rated ESG sukuk are investment grade, all issuers have Stable Outlooks, and there have been no defaults.”
According to Fitch, ESG sukuk accounted for around 40 percent of emerging-market ESG debt issuance in US dollar terms in 2025, up from 18 percent in 2024.
Global ESG sukuk issuance rose more than 60 percent year on year to $18.5 billion in 2025, with Saudi Arabia accounting for 33 percent of the total.
Malaysia followed with a 28 percent share, while the UAE and Indonesia accounted for 19 percent and 9 percent, respectively.
Outstanding ESG sukuk reached $58 billion at the end of 2025, representing a 30 percent year-on-year increase.
The report noted that social sukuk are also gaining traction globally, alongside sustainability-linked, orange and climate sukuk.
Recent developments include Pakistan issuing its first sovereign green sukuk and Oman Electricity Transmission Co. SAOC launching Oman’s first ESG sukuk.
Highlighting regulatory progress, Fitch said Malaysia has granted tax exemptions for Sustainable and Responsible Investment sukuk under its income tax rules.
“Saudi Arabia’s Capital Market Authority issued guidelines for green, social, sustainable and sustainability-linked debt, while Qatar’s central bank launched a Sustainable Finance Framework. In addition, the UAE’s central bank has begun developing a Sustainable Islamic M-Bills program,” the agency said.
