• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 39 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 11 days e-truck insanity
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

Saudi Energy Minister Calls For Long-Term OPEC+ Cooperation

The Saudi energy minister has called on his colleagues in OPEC+ to stay in agreement about production policies to ensure long-term market stability.

“We need to keep this consensus-building approach to be with us permanently because, without it, we will lose sight of our collective ambition,” Prince Abdulaziz bin Salman said at the International Petroleum Technology Conference in Riyadh this weekend, as quoted by Bloomberg.

“Ask any producer of oil and gas today. If it were not for OPEC+ would they be the chairmen and the CEOs of today? And the answer: they would have vanished,” bin Salman also said.

With regards to OPEC’s consensus on production, it has been remarkably solid of late. This may well be due to the fact that most OPEC producers don’t have the capacity to increase production as much as they agreed to under the OPEC+ plan to return to pre-pandemic levels of output. According to analysts, Saudi Arabia and the UAE are likely the only OPEC members that have the spare capacity to boost production considerably.

However, even a member such as Nigeria, which has been against strict production curbs and which has only recently managed to boost its production close to its OPEC+ quota, is not arguing about the path the cartel has taken.

This suggests that there is stronger unity among the group’s members, which in turn suggests continued limits on supply additions even from producers that have the capacity to pump more. And this, ultimately, means higher prices for longer as the consensus on demand remains quite bullish.

Interestingly, some OPEC members do not seem to share the belief expressed by some commodity industry executives such as Vitol’s Russell Hardy that the global oil market is dangerously undersupplied.

“We are on a journey to attend to the market by gradually increasing production, and we think that this plan is attending to the supply and demand,” UAE energy minister  Suhail Al-Mazrouei said at the International Petroleum Technology Conference. “I think our plan is working, and I don’t think that the market is hugely under-supplied.”

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News