Saudi Energy Minister Prince Abdulaziz bin Salman stated today, Sunday, that the recent OPEC+ alliance agreement includes comprehensive reforms as the alliance works to address the "ambiguities" in the market, emphasizing the need to work "against so-called doubts and concerns." He added, during the Arab-Chinese Business Conference in Riyadh, when asked about what he sees as necessary to achieve market stability, "This is why we reached this agreement."
He noted that while the spot market was giving some signals, the futures market was indicating the opposite, which means that the OPEC+ alliance must "remain on standby." On another note, he mentioned that he would not be surprised if more announcements regarding Saudi-Chinese investments come soon, asserting that he ignores criticisms regarding the growing Saudi-Chinese relations.
In response to a question about the relationship with India, the Saudi Energy Minister confirmed that his country is engaged with everyone and hopes to export electricity to India, pointing out that demand for oil in China is still increasing.
Saudi Arabia, the largest OPEC exporter, announced a voluntary production cut of one million barrels per day for July during the OPEC+ meeting in Vienna last week. The bloc also reduced the collective production target for 2024, and the nine countries participating in these voluntary cuts extended the reductions announced in April until the end of 2024. The Saudi Energy Minister stated that the new OPEC+ agreement will be beneficial for those investing to increase their production capacity.
