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Saudi Energy Minister Prince Abdulaziz bin Salman called for rationality in order to make Monday’s OPEC + meeting a success. He explained in an interview with Al-Arabiya on Sunday evening that “a certain concession and rationality” must be addressed to reach an agreement when the group holds its meeting scheduled for today.
He also pointed out that the extension is the origin, not the branch, ”referring to the extension of the remaining cuts until the end of 2022.
Balancing the interests of producers and consumers
The minister stressed the need to strike a balance “between taking action that deals with the market situation now and taking control of things at the same time so that it is able to interact with other data when they are occur … If everyone wants to increase production, the agreement must be extended, “referring to the ambiguity associated with The trajectory of the epidemic and production from Iran and Venezuela.
In addition, he explained that research is currently underway on a way to balance the interests of producing and consuming countries and market stability in general, especially at a time of expected scarcity due to low stocks.
Fantastic Achievements
He said: “There is a great effort made in the last 14 months, which has resulted in some fantastic achievements, that it is a shame for us not to preserve them. Therefore, some concession and the rationality are the real savior for us. “
Prince Abdulaziz also stressed that the Kingdom is “the greatest sacrifice” in achieving voluntary cuts, adding that “no country can take as a benchmark the level of its oil production in a month, and there is a mechanism whereby countries can oppose it “.
The United Arab Emirates had announced earlier on Sunday that it supported the increase in production from August, but had suggested postponing the decision to extend the cuts to another meeting.
He also considered that the benchmarks in basic production should be reviewed before any extension.
It should be noted that with the significant drop in demand for oil due to the Covid-19 pandemic, OPEC + agreed last year to reduce production by nearly ten million barrels per day from May 2020, with plans to end the restrictions by the end of April 2022..
The volume of reduction is currently around 5.8 million barrels per day.
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