Saudi Arabia decides to extend further cut in production … and oil price skyrockets

Saudi Arabia’s Energy Minister said today, Thursday, that the Kingdom will extend its voluntary reduction in oil production by one million barrels per day, and will decide in the coming months when it will gradually begin to reverse .

“We are in no rush … we are cautious,” Prince Abdulaziz bin Salman said at a press conference after an OPEC + ministerial meeting, adding that Saudi Arabia will decide when to end the voluntary reduction in production “at a convenient time for us.”

Brent contracts and U.S. crude jumped more than 5% today, Thursday, after Saudi Energy Minister Prince Abdulaziz bin Salman called for caution and vigilance at the start of ” a meeting of OPEC ministers and their allies on the future of supply cuts.

Prince Abdulaziz bin Salman said the recovery in demand for oil depends on the rapid distribution of vaccines to prevent the Corona virus and the way vaccines are distributed in countries around the world.

The Minister added, during his presidency of the fourteenth meeting of OPEC and non-OPEC countries, that the percentage of compliance among OPEC + members has reached high figures and the understanding between them is excellent.

Prince Abdulaziz bin Salman said: “We learned from last year about the difficulty of predicting in an unexpected environment, and we stress the importance of caution and anticipation, especially as our efforts have mitigated the impact of the three waves of the virus, declining production of coalition countries and Saudi Arabia’s voluntary reduction of one million barrels per day in February and March. “This has led to an acceleration of the rebalancing of the market, and all that we have achieved will not be wasted and our efforts will not be in vain.”

The minister added: “Before we take any further action, let us make sure that the light we see on the horizon is not wrong, and that the right way now is to continue our efforts, and that we have plans. emergency and backup in case of unexpected things happen. “

The Minister praised Nigeria’s efforts to complete the compensation schedule to increase its production, expressing his aspiration to complete compensation for the rest of the countries.

Currently being traded, Brent futures rose $ 3.04, or 4.7%, to $ 67.11 a barrel, while U.S. West Texas Intermediate crude rose $ 2.84, or 4.6%, to $ 64.12.