Energy minister: Global developments vindicate decision of OPEC+ on output cut

Energy minister: Global developments vindicate decision of OPEC+ on output cut

Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman said on Sunday that the OPEC+ alliance decision to cut oil production by two million barrels per day was proven to be the correct one when recent developments are taken into consideration.

Addressing the Saudi Arabia Budget Forum 2023 in Riyadh on Sunday, he said that consensus has positive implications on the market and that the alliance would continue to focus on market stability in the year ahead.

The alliance, which groups together members of the Organization of Petroleum Exporting Countries (OPEC) and allies including Russia, last met on December 4 and decided to keep output unchanged amid a weakening economy and uncertainty over how the Russian price cap would affect the market.

The minister stressed that global developments have proven the validity of OPEC+ decisions. At the December 4 meeting, the OPEC+ group decided to stick to its oil production targets, while oil markets struggle to assess the impact of the slowdown in the Chinese economy on demand and the repercussions of the G7 decision to put a price cap on Russian oil on supply.

The minister insisted that every OPEC+ alliance member takes part in decision-making. “Group action requires agreement and therefore I