VIENNA — Saudi Energy Minister Prince Abdulaziz bin Salman stressed the importance of ‘pre-action’ to confront the situation of unprecedented uncertainty in the oil market.

He emphasized that OPEC Plus will remain as a fundamental force for the stability of the global economy, saying “Saudi Arabia would continue to make the required commitments to improve the global economy,” he said.

The energy minister made the remarks following the announcement of the OPEC + countries to slash oil production by two million barrels per day (bpd) at the conclusion of their meeting. The 33rd OPEC and non-OPEC Ministerial Meeting, which concluded in Vienna on Wednesday, said the cut in production would take effect in November.

The OPEC Plus energy cartel agreed to their biggest cuts in production in more than two years in a bid to raise prices. The cut of two million barrels a day represents about two percent of global oil production. According to the agreement, Saudi Arabia’s share of production will decrease to 10.48 million bpd in November. The Vienna meeting also decided to extend the “declaration of cooperation” until the end of 2023, provided that ministerial meetings will be held every six months.

Prince Abdulaziz emphasized that “what we are doing is essential for all oil exporters, even outside of OPEC Plus, which will remain a major force for the stability of the global economy.” The energy minister noted that “the amount of uncertainty we are currently experiencing is unprecedented. The current situation makes it difficult for large consumers to resort to the paper market.”

Regarding the impact of central bank decisions on demand, Prince Abdulaziz said: “We do not know the implications of anti-inflation policies on global demand.” The minister also pointed to the need for vigilance, saying, “we have to be careful and remain honest about our ability to predict the future.”

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