Saudi Gazette report

CALGARY, CANADA — Saudi Energy Minister Prince Abdulaziz bin Salman defended on Monday OPEC+ cuts to oil market supplies, saying international energy markets need light-handed regulation to limit volatility. Addressing a dialogue session within the World Petroleum Congress in Canada, the minister emphasized that sustainable markets are the basic pillar of energy security.

Prince Abdulaziz said there was ongoing uncertainty about Chinese demand, European growth and central bank action to tackle inflation. He said that the International Energy Agency (IEA) had moved away from predicting market conditions to playing a political role.

Prince Abdulaziz noted that supply and demand forecasts are not always reliable. “We want to be proactive and cautious. We do not target prices, but rather reduce volatility,” he said. “The world may shift from one energy crisis to another if supply chains are not well planned, and there is a need to establish partnerships to produce green hydrogen and clean electricity,” the minister pointed out.

It is noteworthy that Saudi Arabia extended on Sept. 5 its 1 million barrel per day voluntary crude oil production cut until the end of the year. The reduction will put Saudi crude output near 9 million barrels per day over October, November and December and will be reviewed on a monthly basis. Saudi Arabia first applied the 1 million barrel per day reduction in July and has since extended it on a monthly basis. The cut adds to 1.66 million barrels per day of other voluntary crude output declines that some members of OPEC have put in place until the end of 2024.