There is no need for the “OPEC +” meeting in the absence of an agreement on how to deal with the oil crisis

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Energy Minister Prince Abdulaziz bin Salman said yesterday that he does not see the need to hold a meeting of OPEC + in the period from May to June in the absence of an agreement on the measures that must be taken to deal with the impact of the Corona virus on demand and prices.

In response to the remarks of his Russian counterpart yesterday, His Highness told Reuters: “I do not see any justification for holding May-June meetings that would only show our failure to do what is necessary in such a crisis and adopt the necessary measures.”

He said: Every oil producer should maintain its market share after Russian Energy Minister Alexander Novak was quoted as saying earlier that the price cuts offered by Saudi Aramco have caused market panic.

He said: “In a free market, every oil producer must demonstrate its competitiveness, maintain and enhance its market share.”

For his part, Aramco CEO Amin Al-Nasser said yesterday that the company will raise crude supplies, including oil to clients inside and outside the Kingdom, to 12.3 million barrels per day in April.

Al-Nasser said in a statement to “Reuters”: The crude supply will increase 300 thousand barrels per day from the maximum sustainable production capacity of the company, which amounts to 12 million barrels per day.

Al-Nasser added that the company agreed with the customers to provide these quantities as of the first of April.

Market supplies may vary from production depending on movement of barrels to and from stocks.

The unprecedented increase in crude supplies by the kingdom comes after the collapse of talks between OPEC and other producers led by Russia, the group known as OPEC +, which sought to extend joint efforts to reduce supplies after the end of March.

The three-year OPEC + cooperation ended on Friday after Moscow refused to support further production cuts to boost prices damaged by the outbreak of the Corona virus.

OPEC responded by removing all restrictions on the production of its member states.

OPEC + actually cut production by 2.1 million barrels per day, led by the Kingdom, which reduced its production by more than agreed.







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