On Monday, Saudi Arabia’s new energy ministry indicated that the world’s top petroleum exporter would keep working with other producers. This is to achieve market balance with the OPEC-led group as the supply-curbing agreement would survive “with the will of everybody.”
In a news report on Sunday, Prince Abdulaziz bin Salman, who was replaced as the energy minister from Khalid al-Falih, stated there would be “no radical” change in the petroleum policy of Saudi Arabia.
Meanwhile, OPEC’s de facto leader said the policy was based on strategic considerations such as reserves and energy consumption.
The prince has assisted in negotiating the deal between the Organization of the Petroleum Exporting Countries (OPEC).
Moreover, it was in cooperation with the group known as OPEC+ in cutting global crude supply in order to sustain prices and balance the market.
Elsewhere, the prince indicated in a statement that the sidelines of an energy conference in Abu Dhabi with the OPEC+ alliance was “staying for the long term.”
He also called on the OPEC countries representatives to abide by the output targets.
In addition, the prince said, “We always worked in a cohesive, coherent way within OPEC to make sure that producers work and prosper together.”
When asked if there was a need for additional oil production cuts to support the market, the prince answered, “It would be wrong from my end to pre-empt the rest of the OPEC members.”
World Energy Demand Weakened
On a Monday news, the Saudi minister refused to comment on oil prices, which grew on news of his appointment.
Global benchmark Brent crude futures inched up 35 cents at $61.89 a barrel, while U.S. West Texas Intermediate also strengthened 31 cents at $56.83.
Prince Abdulaziz stated he did not imagine the world energy demand had slowed down.
He also did not believe that the global economic point of view is expected to develop. It is once a trade quarrel between the United States and China was resolved.
Earlier, in a news report, the oil ministers of Oman and Iraq in Abu Dhabi stated it was too early to assess whether deeper cuts were needed to support oil markets. This is at a time of global recession concerns due to the U.S.-China row.
The oil minister of Iraq, OPEC’s second-largest producer, indicated Baghdad was committed to fulfilling with the OPEC countries deal. Meanwhile, his country’s production rose to 4.6 million barrels per day.
Thamer Ghadhban said, “We are committed to respecting the curbs … our exports have decreased by at least 150,000 bpd from the south.”
Oil Market Balance by OPEC And Non-OPEC Producers
On Sunday, the United Arab Emirates’ energy minister, Suhail bin Mohammed al-Mazroui, indicated that OPEC and non-OPEC producers were “committed” to achieving oil market balance.
Moreover, Abu Dhabi would back any consensus decision on further production cuts.
The OPEC+ cooperative ministerial monitoring committee, known as JMMC, will gather on Thursday in Abu Dhabi. They will talk about the sidelines of the energy conference.
Mazrouei said trade and geopolitical conflicts are affecting the market more than demand and supply.
But he was quick to rule out impulsive steps guided by the trade war between the United States and China.
Mazrouei indicated in a news report that “the fear of slower (oil) demand is only going to happen if that tension is escalating, and I am personally hopeful that is not the case.”
Last week, in the United States, drilling companies cut the number of operating oil rigs. This is already for a third week in a row now.