Saudi Energy Minister Prince Abdulaziz bin Salman said the OPEC+ group, which includes oil-producing countries both members and non-members of the Organization of the Petroleum Exporting Countries, will remain cautious about production.
The alliance, which includes 23 countries led by Russia and Saudi Arabia, is due to meet on December 4 next year to decide whether to cut production again, maintain current levels or increase production.
Prince Abdulaziz bin Salman pointed out that members of the OPEC+ group look at the state of the world economy and see many “doubts”.
Oil prices have fallen since last June when central banks raised interest rates and imposed coronavirus restrictions in China, in line with a zero Covid strategy, but Brent oil is still above $95 a barrel, up 23% in this year.
Markets fear a cut in black gold supplies after the European Union effectively bans Russian oil imports from next month.
“Our theme is caution. It’s about responsibility and not losing sight of what the market demands,” the Saudi energy minister said in an interview with Bloomberg TV at the COP27 climate summit in Sharm el-Sheikh, Egypt.
The Saudi prince cited an International Monetary Fund report last month saying “the worst is yet to come for many economies.” “We are talking about a recession. I also see what central banks are saying and doing,” he added.
China recently eased some coronavirus restrictions, including cutting the amount of time travelers must spend in quarantine, a move that has sent Chinese oil and stock prices up, but many analysts are skeptical that the country will reopen quickly.
Source: Bloomberg