Russia-Saudi Energy Minister Prince Abdulaziz bin Salman told a conference on Wednesday that OPEC+ will do “whatever necessary” to assist the market.
In response to falling prices, OPEC+, which pumps 40% of the world’s petroleum, has slashed output since November.
Saudi Arabia and Russia, the world’s largest oil exporters, deepened oil production cutbacks on Monday to boost prices.
The market only temporarily rose. Brent futures fell over 1% to $75.30 a barrel on Wednesday, below the $80-$100 per barrel most OPEC nations need to balance their budgets.
OPEC wants a balanced oil market for consumers and producers without a price target.
The US, the largest oil producer outside OPEC+, has frequently urged the organization to increase production to boost the global economy and criticized Saudi collaboration with Russia after Moscow invaded Ukraine.
However, Riyadh has repeatedly rejected U.S. efforts. Prince Abdulaziz stated on Wednesday that fresh joint oil output cutbacks Russia and Saudi Arabia agreed upon this week had again proven skeptics wrong.
“Part of what we have done (on Monday) with the help of our colleagues from Russia was also to mitigate the cynical side of the spectators on what is going on between Saudi and Russia on that specific matter,” Prince Abdulaziz stated.
“It is quite telling seeing us on Monday coming out with not only our (oil cut) extension… but also with validation from the Russian side,” he told an OPEC International Seminar of oil sector CEOs and ministers from OPEC and allies.
Reuters, Bloomberg, and the Wall Street Journal were denied media access to cover the partly online event by OPEC.
According to a source, Prince Abdulaziz informed the seminar that OPEC+ would do “whatever necessary” to assist the market after the broadcast.
FOR NOW
On Wednesday, UAE energy minister Suhail Al Mazrouei told reporters that more oil cuts should balance the market.
“This (the latest addition output cuts) is enough to assess the market and look at the market balance,” Mazrouei told reporters.
Since it was already generating below capacity, the UAE will not contribute to any cuts.
“It’s bigger…” Many countries lack investments. We may need to recruit new members. “The more countries we have, the easier it is to ensure the world has enough oil in the future,” Mazrouei said.
“Imagine if we had 60% or 80% of the producers… We will definitely do a better job.”
