Saudi Energy Minister says real impact of oil output cut likely to range between 1 – 1.1 mln bpd

Saudi Minister of Energy Prince Abdulaziz bin Salman

OPEC+ will remain a main power for global economic stability, said Saudi Minister of Energy Prince Abdulaziz bin Salman.

In a press conference following the OPEC+ meeting that approved output cut by two million barrels per day (bpd), the minister said the current case of uncertainty is unprecedented, noting that major consumers fail to resort to paper market.

He further said the real impact of production cut will likely range between 1 million to 1.1 million bpd, given that some countries produce less than their market shares stated in the latest agreement.

The prince stressed the importance of "pre-action" to confront the state of uncertainty, noting that oil prices almost returned to their January levels, before the current crisis.

He also confirmed the importance of continued commitments to improve the global economy, indicating that resorting to strategic reserves by consuming countries is a sovereign decision.

“We have to be careful and remain honest about our ability to predict the future. What we are doing is essential for all oil exporters, even for non-OPEC+ members,” the minister said.

“We don’t know the repercussions of anti-inflation policies on global demand,” he noted.

On the other hand, UAE Minister of Energy Suhail Al Mazrouei said, “We must ensure that supplies reach markets in the long term.”

He added that oil prices are not the biggest contributor to the current economic crisis, and gas prices cause more damage to the global economy compared to oil.