Saudi voluntary oil cut will help overcome low first-quarter demand: OPEC chief

Saudi Arabia’s decision to implement a voluntary reduction in oil production levels by about one million barrels per day in February and March will help the market navigate through the seasonally low oil demand in the first quarter, OPEC Secretary-General Mohammad Barkindo said.

“Despite the heroic efforts we have made, stocks are still high, as stocks in OECD and non-OECD countries are high and must be reduced further,” he told an online forum on Jan. 13, 2021.

Barkindo also highlighted several key variables that OPEC+ ministers were focusing on, including supply adjustments, vaccines, lockdowns, fiscal and monetary stimulus measures, world GDP growth and level of global oil demand.

“We have to keep our eyes on all of them and remain in the driving seat going forward,” he stated.

OPEC is scheduled to announce its monthly production report for December later today.