‘I will not take a precautionary approach in terms of oil production.’


  • The influential Saudi and Russia-led oil producing alliance is prepared to wait months for guidance from “real numbers” before adjusting policies amid crude market price fluctuations, the Saudi energy minister said on Sunday.
  • Prince Abdulaziz bin Salman said, “Yes, we may delay taking a decision on what to do, but I will not abandon the precautionary approach, even if it takes one or two or three or four months or more than five months.” It may take time.” On the occasion of MENA Climate Week in Riyadh.
  • He said, “I honestly believe that the best thing I can say is that the solidarity of OPEC+ should not be challenged. We have been through the worst, I don’t think we have to go through any worse.” Gotta go through the situation.” , amid growing concerns over the escalating conflict in Israel.

Saudi Energy Minister Prince Abdulaziz bin Salman addresses the opening session of the Middle East and North Africa Climate Week in Riyadh on October 8, 2023.

Fayez Nureldine | AFP | getty images

The influential Saudi and Russia-led oil producing alliance is prepared to wait months for guidance from “real numbers” before adjusting policies amid crude market price fluctuations, the Saudi energy minister said on Sunday.

Prince Abdulaziz bin Salman said, “Yes, we may delay taking a decision on what to do, but I will not abandon the precautionary approach, whether it takes one or two months, or three or four months, or five months.” It may take more time.” CNBC’s Dan Murphy on the sidelines of MENA Climate Week in Riyadh.

The Riyadh-led Organization of the Petroleum Exporting Countries and their non-OPEC allies, jointly known as OPEC+, agreed last October to remove 2 million barrels per day of production from the oil market. The decision has been upheld. Since then, some OPEC+ members have implemented additional voluntary declines outside the group decisions, with cuts of about 1.66 million barrels per day through the end of 2024, and Saudi Arabia and Russia adding an additional 1 million to their supplies, respectively. There is a shortage. barrels per day and 300,000 barrels per day by the end of this year.

A technical OPEC+ committee, the Joint Ministerial Monitoring Committee, convened on October 4 to review market fundamentals and individual country compliance with production obligations. It ended its meeting without calling an emergency ministerial meeting to adjust the output strategy.

Asked whether the group might need to take further coordinated production action to maintain market stability as early as 2024, Prince Abdulaziz said: “We hope we don’t have to do that,” but stressed. Said, “Never give up on what OPEC+ can do for this.” The purpose of participating in this market.”

Prices initially rose near $95 per barrel due to the recent supply crunch and improving demand, but recently fell again due to macroeconomic concerns due to the high interest rate environment. Oil prices have been a significant contributor to global inflation since Moscow’s full-scale invasion of Ukraine, especially in Europe and the G7 countries, where consumers have lost access to sanctioned Russian barrels.

Putting further pressure on prices, the Paris-based International Energy Watchdog last month predicted that demand for oil, gas and coal would peak by 2030 — prompting vocal objections from OPEC, whose officials have repeatedly and has controversially advocated simultaneous investment in fossil fuel and renewable supplies. To avoid short-term energy shortages.

“We want to show the world that we are going to use every source of energy,” Prince Abdulaziz reiterated on Sunday. He said the state is “very serious about addressing the issue of climate change. We’re not going to be in denial.” “In fact, we firmly believe that the science is saying that it exists and that we have to pay attention to it.”

The energy transition commitments of OPEC+ countries – including group member the United Arab Emirates, which will host the COP28 conference starting in late November – have been heavily criticized due to the high carbon emissions resulting from fossil fuel production and consumption. Has been.

After two days of new unrest in the Middle East, where the Palestinian terrorist group Hamas launched a deadly and decisive attack against Israel, killing at least 600 Israelis, observers are keeping an eye on the open market to see whether Which way do oil futures prices go? Write, According to official Israeli communications, Hostilities took place a day after 50th Anniversary of the fourth Arab-Israeli war. Critically for crude oil markets, the 1973 invasion led to a global energy crisis, resulting in Saudi-led Arab oil-producing countries – which support the Palestinian cause – calling on the US to support Israel. Banned against.

The latest conflict erupts at a high-stakes point in Middle Eastern diplomacy, after the US has stubbornly pushed for months to normalize ties between Israel and Saudi Arabia – which severed ties with arch rival Iran earlier this year. , which is historically a supporter of Hamas. ,

Asked whether OPEC+ had the toolkit to deal with the latest Israeli-Hamas tensions, Prince Abdulaziz deferred comment to the Saudi Foreign Ministry, but insisted the alliance of oil producers “has dealt with the global ups and downs And we have dealt with the fallout”. Challenges, including the COVID-19 pandemic.

He said, “I honestly believe that the best thing I can say is that the solidarity of OPEC+ should not be challenged. We have been through the worst, I don’t think we have to go through any worse.” Gotta go through the situation.” ,



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