OPEC+ will remain a major force for global economic stability: Saudi Energy Minister
Saudi Energy Minister Prince Abdulaziz bin Salman said (Wednesday) that OPEC + will remain a fundamental force for the stability of the global economy, stressing the commitment to continue work towards improving the global economy.
He added during a press conference that followed the “OPEC Plus” meetings, saying: “What we are doing is essential for all oil exporters, even outside OPEC Plus, and the amount of uncertainty we are currently experiencing is unprecedented, and that the current situation makes it difficult for large consumers to resort to the paper market.”
The Saudi Energy Minister stressed the importance of “pre-action” to confront the state of uncertainty, and said: “We do not know the repercussions of anti-inflation policies on global demand, and we must be careful and remain honest about our ability to anticipate the future.”
After their meeting today, the members of “OPEC Plus” agreed to reduce production by two million barrels per day in November, according to the group’s statement.
The statement also stated that the “declaration of cooperation” would be extended until the end of 2023 and that ministerial meetings would be held every 6 months.
The OPEC + Ministerial Monitoring Committee will meet every two months to follow up on market developments.
According to the agreement, Saudi Arabia’s share of production will drop to 10.48 million barrels per day in November.
The announced production cut may lead to a recovery in oil prices, which fell to about $90 from 120 three months ago, due to fears of a global economic recession.
