Saudi Arabia seeks market balance; oil prices impact on inflation limited: minister

Prince Abdulaziz bin Salman, Minister of Energy

The monthly meeting of OPEC and its allies (OPEC+) seeks to maintain market stability, and ensure supply and demand balance, Al-Sharq TV reported, citing Saudi Minister of Energy Prince Abdulaziz bin Salman.

When Saudi Arabia agreed with Russia on increasing output, three challenges were taken into account, including higher output in Venezuela, return of Iran’s oil supply to market, and uncertainty about the course of the pandemic, the minister indicated.

The minister added that flexibility may begin to appear in September, whether by raising output or extending remaining cuts.

He also underlined the Kingdom’s efforts and voluntary output cuts by 400,000 barrels in 14 months.

“We do not comment on prices. They are close to 2018 levels and have a limited impact, or none at all, on inflation,” he noted.

OPEC+ postponed its Friday meeting to today, July 5, for more talks on oil output policy, as it mulls raising output by 400,000 barrels per day from August to December 2021, Argaam reported.