Therese Sfeir
Fri 12/31/2021 1:18 PM
Saudi Arabia Says OPEC+ Agreement Essential To Market Stability
Asharq Al-Awsat
Custodian of the Two Holy Mosques King Salman bin Abdulaziz said on Wednesday that the OPEC+ production agreement was “essential” for the stability of the oil market, emphasizing the importance of all producers’ commitment to the agreement.
In an annual speech to the Kingdom’s Shura Council, King Salman said that market stability and balance were among the pillars of the Saudi energy strategy, adding that the efforts of the world’s largest oil exporter to maintain additional production capacity have proven important to maintain the security of energy supplies.
“The Kingdom is keen to continue working with the OPEC+ agreement, for its essential role in stabilizing oil markets. It also stresses the importance of all participating countries’ commitment to this agreement,” he stated.
The Organization of the Petroleum Exporting Countries and its allies, including Russia, agreed this month to stick to their current policy of increasing oil production every month, despite fears of a new decline in oil prices due to the release of the United States’ crude reserves, and the spread of the Omicron variant. The OPEC+ alliance is scheduled to discuss its policy on Jan. 4.
King Salman announced that the Kingdom’s commitment to facing the increasing challenges of climate change, working to strengthen the implementation of the Paris Agreement, and supporting the Green Saudi and the Green Middle East initiatives “confirms its global leadership in efforts to protect the environment and reduce carbon emissions, enhance public health and quality of life, improve the efficiency of oil production, raise renewable energy rates, and achieve sustainable development.
Meanwhile, China has issued its first batch of 2022 crude oil import quotas to mostly independent refiners, totaling 109.03 million tons, 11 percent below the first allotment in 2021, according to five industry sources and a document reviewed by Reuters.
Among the 42 companies granted quotas, the country’s top three private refiners -- Zhejiang Petrochemical Corp (ZPC), Hengli Petrochemical 600346.SS and Shenghong Petrochemical -- together won 41.95 million tons, about 38 percent of the total.
China has set total crude import quotas for non-state companies in 2022 at 243 million tons, the same level as it initially planned for 2021, Reuters added.
