Saudi Arabia Say OPEC+ Has Been Proved Correct

Saudi Arabia’s energy minister reiterated that the kingdom will remain cautious about raising oil production according to Prince Abdulaziz bin Salman on Saturday.

• He said OPEC+ had been proved correct with its decision in October to cut output by 2mbpd.
• “If people had trusted us then, we wouldn’t have undergone the trepidations that happened,” he said, referring to price volatility after the announced production cut.
• Last week the OPEC+ monitoring committee recommended the group keep production steady- with uncertainty for changing production over Russian sanctions and Chinese demand.
• Many market analysts forecast higher prices with optimism for oil demand this year but OPEC are not changing production targets yet. “I will believe it when I see it and then take action,” said Prince Abdulaziz bin Salman.
• He also warned that sanctions against energy producers could backfire with higher demand. “All these sanctions, embargoes, they all will convolute into one thing and one thing only: lack of energy supplies of all kinds when they’re most needed,” he said. “That is my worry.”