SAUDI ARABIA DEFENDS OPEC+ PRODUCTION CUTS

Tue 19 September 2023:

Saudi Energy Minister Prince Abdulaziz Bin Salman yesterday defended OPEC+’s oil production cuts stating that the aim of the cuts is to achieve stable and sustainable markets.

The minister made his remarks during a speech at the World Petroleum Congress held in Canada, as reported by the Saudi state-owned channel Al Arabiya.

“We can reduce more, or we can increase, that has been a subject that we want to make sure that the messaging is clear, that it’s not about, again, this jacking up prices,” Saudi Energy Minister Prince Abdulaziz bin Salman said Monday at the World Petroleum Congress in Calgary, Alberta.

“It’s about … making the decision at the right time, when we have the data, and when we have the clarity that would make us in much more of a comfort zone to take that decision.”

Prince Abdulaziz said: “In the OPEC+ alliance, we aim to preempt any negative disruptions to the global energy market. We do not target prices, but rather aim to reduce volatility.”

The alliance believes that reducing production aims to create safe oil reserves and prevent any surpluses in supply, while maintaining inventories in case of market fluctuations that may lead to an increase in global demand.

OPEC and its allies, known as OPEC+, began limiting supplies in 2022 to bolster the market and bloc leaders Saudi Arabia and Russia have extended their combined 1.3 million barrel per day (bpd) cuts until the end of 2023.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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