OPEC+ ‘EQUIPPED TO DEAL WITH CHALLENGES’ AND CAN CUT OUTPUT IF REQUIRED: SAUDI MINISTER

According to Saudi Arabia’s energy minister, the Opec+ super club of oil producers is prepared to handle the difficulties presented by the choppy crude market and is also capable of reducing production when necessary.

In the midst of the “difficult environment,” the 23-member group, led by Saudi Arabia and Russia, has emerged “stronger and more unified than ever,” Prince Abdulaziz bin Salman said in an interview with Bloomberg.

“As has been clearly and repeatedly shown in 2020 and 2021, Opec+ has the commitment and the means within the existing procedures of the Declaration of Co-operation to deal with such difficulties and provide guidance, including decreasing production at any time and in varied ways. He added that Opec+ will soon begin work on a new agreement that will last past 2022 and will build on our prior experiences, accomplishments, and successes.

Earlier this month, Opec+ decided to increase September output by a much slower 100,000 barrels per day, despite ongoing price volatility brought by worries that a recession will reduce demand for petroleum. This year, the price of oil has been incredibly unstable due to Russia’s invasion of Ukraine and the subsequent sanctions imposed by the US and the UK on the import of Moscow’s crude.

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