During the twenty-fourth meeting of the Joint Ministerial Committee of “OPEC Plus” Tuesday, Prince Abdulaziz bin Salman bin Abdulaziz, Saudi Minister of Energy, Chairman of the Monitoring Committee, expressed his gratitude and thanks to the United Arab Emirates and its pivotal role in the success of the “OPEC Plus” agreement.
The Organization of Petroleum Exporting Countries (OPEC) had earlier appreciated the great efforts made by the UAE over the past period to maintain consensus among the members of the organization regarding all issues related to the global oil market and the support it provided to maintain its balance and stability in a manner that takes into account the interests of producers and consumers. .
The UAE urges commitment
An OPEC Plus source told Reuters that the Minister of Energy and Infrastructure, Eng. Suhail Al Mazrouei, informed a closed meeting of the group’s committee on Tuesday that all members must first fully implement oil reduction pledges before agreeing to change or extend the current agreement.
OPEC and its allies are considering extending their current deal to cut oil production of 7.7 million barrels per day for three or six months when it expires in January.
Saudi Arabia calls for flexibility
Saudi Arabia called on other OPEC Plus member states on Tuesday for flexibility in responding to market needs, while strengthening the argument for tightening oil production policy in 2021 to counter falling demand in light of a new wave of the coronavirus pandemic.
OPEC Plus, which includes the Organization of the Petroleum Exporting Countries, Russia and other countries, is considering delaying a plan to increase production by 2 million barrels per day, or 2% of global demand, in January to support the market.
“We, as a group, do not want to give the market any excuse to respond negatively,” Saudi Energy Minister Prince Abdulaziz bin Salman said in a remote meeting of the Joint Ministerial Monitoring Committee of OPEC Plus.
Three OPEC Plus sources said that the Joint Ministerial Monitoring Committee, which can recommend policy steps to the wider group, did not come to formal recommendations today.
Saudi Arabia, the world’s largest oil exporter, is indicating its desire for a tighter policy in 2021 to reduce stocks that are still accumulating after it was deemed to have declined this year.
But other big producers, such as Iraq, have failed to fully implement the pledged cuts and indicated that they need a space to produce more oil in the next year.
“The market will not tolerate those who do not abide by the agreements,” the Saudi minister said. This makes it imperative that we be prepared to move according to the market requirements. I said recently that we have to be ready to amend the terms of our agreement if needed. ”
OPEC Plus, whose expanded meeting is scheduled to take place on November 30 and December 1 to discuss policy, agreed to unprecedented oil cuts earlier this year if oil demand declined due to global lockdown measures aimed at preventing the spread of the virus. .
Alexander Novak: Russia stands by its pledges
Russian Deputy Prime Minister Alexander Novak said that Russia will abide by its commitments under the OPEC Plus agreement, adding that the market has reached stability thanks to joint efforts. He did not say whether Moscow was prepared to extend the current cuts.
Sources in OPEC Plus said that a favorable option among the group’s member states is to keep the existing cuts of 7.7 million barrels per day for a period of three to six months, instead of reducing the cuts to 5.7 million barrels per day in January. (Agencies)