Saudi Arabia expressed optimism towards the latest OPEC+ agreement having a positive effect on global markets in a way that serves the common interests of all signatories and contributes to the security of supply to consumers.
The agreement also ensures fair returns for capital investors in the energy sector.
Saudi Minister of Energy, Prince Abdulaziz bin Salman, confirmed that the recovery of oil markets is dependent on the contribution of all members of the agreement and their commitment to concrete action.
He noted that Russia and Saudi Arabia’s understanding had a positive impact in reaching an extension of the oil output cuts at the rate of 9.6 million barrels per day throughout July. The extension was agreed on at the ministerial meeting of OPEC+ members last Saturday.
On the recent OPEC + agreement, Prince Salman said that the exceptional circumstances made everyone aware that the decision taken by OPEC+ needed to be followed, adding that some countries, that previously admitted to not abiding by output cuts, were willing to commit to production cuts in coming months.
“We work to defuse all politicization of agreements and to recognize the circumstances of each member ... We try to benefit from the experiences of the past in joint cooperation and enhance confidence within the organization,” Prince Salman said.
In televised remarks, the energy minister revealed that Saudi Arabia is seeking to strengthen energy-related relations with Algeria, describing bilateral cooperation between the two countries as a founding corner within OPEC.
Global oil markets received the extension on the OPEC+ agreement with some satisfaction, in the hope of prices returning to what they were before the coronavirus pandemic, which had a negative impact on sales volume and produced low demand.
Energy experts believe that Saudi action in cooperation with other oil exporters is behind the improvement recorded in global oil markets. It also helped in resolving the crisis between OPEC members and other exporters and resulted in the output cut agreement.
