Abdulaziz bin Salman: We received pledges to compensate for the extra production in October-December

Prince Abdulaziz bin Salman – Minister of Energy: He received pledges from countries with excess production to compensate them in the period from October to December. This comes within the framework of the Kingdom’s relentless efforts to ensure that various countries adhere to the agreed quotas in order to ensure price stability. Prince Abdulaziz added in his opening speech to the meetings of the Joint Ministerial Oversight Committee of “OPEC Plus” – yesterday, that no one should have any doubts about the commitment of “OPEC Plus” to work for the stability of oil markets. He pointed out that last month witnessed a large group of mixed messages in the oil market, in light of the uncertainty in energy markets, and we must move at a faster pace than events. He said during the meeting, according to a statement by the Ministry of Energy: that everyone in the current market situation must adhere to three basic principles; They are: forecasting, precaution and anticipation, so that decisions are based on the best data and information, and measures are taken to ward off negative trends and developments. The meeting affirmed the continuous positive contributions of the declaration of cooperation in support of restoring the balance of global oil markets, and the commitment of all participating countries to achieve full compliance with decisions to reduce production, in compensation for the excess production quantities and in advanced compensation plans. The Joint Ministerial Committee to monitor the production cut agreement welcomed the positive performance with regard to the overall level of compliance of the participating countries at 102%.

, Which is the highest level of compliance achieved since May 2020. The Committee commended the members participating in the Declaration of Cooperation who made additional voluntary contributions in September. The OPEC countries and its allies agreed, last September, to reduce the amount of total compensation amounted to 249 thousand barrels per day, as compensation for the excess production quantities during the previous period.

According to the agreement last April, production is currently being reduced by 7.7 million barrels per day until the end of next December, provided that the quantity will be reduced to 6 million barrels, starting next January, after a decline in demand by 20%.

During the current year due to near-total closures as a result of the spread of the Corona virus … His Highness emphasized the beneficial role of oil derivatives, but speculation has no place in the oil market.

On the other hand, Saudi oil exports continued to rise in August 2020 for the second month in a row, after falling to their lowest levels in June, touching 7 million barrels per day, and the increase came directly supported by a rise in crude oil exports by 234 thousand barrels per day on a monthly basis.

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