Saudi Arabia Confident that OPEC+ Made Right Output Decision

Saudi Arabia remains confident that an OPEC+ agreement to increase oil production over the next three months was the right move, said its energy minister.

“It’s still a good decision,” Prince Abdulaziz bin Salman said in an interview on Thursday. “I don’t see anything yet that disturbs us, me or my colleagues at OPEC+.”

The minister spoke a week after the Organization of Petroleum Exporting Countries and allies including Russia agreed to add more than 2 million barrels a day of crude to the market from May to July, anticipating a recovery in fuel demand. Since then, Brent crude has remained above $60 a barrel despite setbacks to the world’s emergence from the Covid-19 pandemic, including a vaccine shortage in India.

Brent crude rose 0.1% to $63.20 at 12:50 p.m. in Singapore, extending this year’s gain to 22%.

OPEC+ acted “in an extremely careful way” last week, Prince Abdulaziz said. The group will continue to meet every month to assess the market, meaning it can quickly adjust its plans if the situation changes.

“If things go south, we can always easily reverse,” the minister said. The deal includes a mechanism that would allow production to “increase, freeze or decrease,” he said.

©2021 Bloomberg L.P.

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