Saudi Energy Minister Prince Abdulaziz bin Salman said, on Sunday, that the recent OPEC + alliance agreement included a comprehensive reform, while the alliance works to confront “ambiguities” in the market.
“This is the reason we reached this agreement,” he added at a conference of Arab and Chinese businessmen in the Saudi capital, Riyadh, when asked what he deems necessary to achieve market stability.
He stated that while the spot market was giving some signals, the futures market was saying the opposite, which means that the OPEC+ alliance must “remain in a state of readiness.”
Saudi Arabia, OPEC’s largest exporter, announced a voluntary production cut of 1 million barrels per day for July during the OPEC+ meeting in Vienna last week.
The bloc also lowered its collective production target for 2024, and the nine countries participating in voluntary cuts extended these cuts announced in April until the end of 2024.
And the UAE got a higher production share that it had been seeking for a long time, an issue that caused tension between the alliance and Abu Dhabi, which is working to increase its production capacity, according to Reuters.
The Saudi energy minister said the new OPEC+ deal would be rewarding for those who invest to increase their production capacity.
Concerns about the global economy dampened the oil market’s reaction to the kingdom’s pledge to cut supplies. Oil prices fell by more than a dollar a barrel, on Friday, to record the second consecutive weekly decline.
2023-06-11 19:26:01
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