Saudi shakes up, minister’s word ignites oil prices by Investing.com

Investing.com – With a word or a hint, Saudi Arabia has managed to maintain the state of discipline in the oil market.

The world’s largest oil exporter has shaken, the balance prevailing in the oil market, as prices have risen from their highest level in nearly a year. The “OPEC +” alliance has agreed to keep production unchanged at current levels.

Crude futures (delivery in May) jumped 5.1% on the announcement of the deal, to climb to $ 67.30 per barrel; WTI (April delivery) rose by a similar rate to $ 64.37.

wave

According to international media, Russia told the “OPEC +” meeting that it wanted to increase oil production in April to fill a deficit in the domestic fuel market.

According to the same sources, Saudi Arabia plans to expand its voluntary production cuts by one million barrels per day for a period of one month until the end of April.

Moscow informed the “OPEC +” meeting that the gradual increase in supply must be careful and gradual.

The Kingdom has offered to extend its voluntary reduction of one million barrels for a month, on condition that the planned restrictions remain for the rest of the producers for an additional month.

This is to ensure an easing of the glut of supply on international markets, or an increase of 500 thousand barrels per day, but with the end of its voluntary reduction in the event that the rest of the producers insist on increasing production. .

a word

Saudi Energy Minister Prince Abdulaziz bin Salman called for caution and vigilance in the energy market, stressing that cuts made by Saudi Arabia and the “OPEC +” alliance have helped to accelerate market equilibrium.

In a video speech he gave at the OPEC + ministerial meeting on Thursday, Prince Abdulaziz said: “I have said for a long time that the recovery in global demand for oil is closely linked to the acceptance of vaccines. and how quickly these vaccines are being introduced around the world.

The uncertainty surrounding the pace of the recovery has not abated. Over the past year, we’ve learned the difficulty of making predictions in such an unpredictable environment.

Stressing the need for vigilance, the Minister of Energy said: “There is no doubt that the global oil market has improved since our last meeting in January.

“The OPEC + production cuts and the Saudi voluntary additional 1 million barrels per day cuts in February and March accelerated the rebalancing process.”

The Saudi Energy Minister said: “Compliance levels have remained at the historically high levels that characterized our efforts. The list of countries on the compensation scale continues to be shortened, and I commend Nigeria for doing so. have completed its compensation. “