Prince Abdulaziz bin Salman, the Saudi Energy Minister/Bloombergby Bloomberg
Saudi Arabia’s Energy Minister said that the Organisation of Petroleum Exporting Counties and its allies (OPEC+) remain focused on using production cuts to reduce oil inventories to normal levels, undeterred by the intensifying geopolitical tensions in the region.
Oil prices have erased all this year’s rally, which saw Brent crude surging to a three-month high of almost $72 a barrel as the US and Iran faced off following the US drone strike that killed a top Iranian general.
Prince Abdulaziz bin Salman, the Saudi Energy Minister, said that crude retreated again as the countries backed away from full-blown conflict while supplies remain comfortable, thus OPEC+ remains committed to pressing on with output cuts aimed at draining away any excess stockpiles.
“Our endeavour in OPEC+ is to try to bring inventories to a certain level where it is within the contours of the recent year, that range should be around the average of the last five years and the period from 2010 to 2014,” said Prince Abdulaziz bin Salman.
The Saudi Energy Minister said that he was ‘very comfortable’ with the implementation of production cuts by OPEC+ nations in December 2019, the final month before the alliance is due to implement even deeper curbs.