Oil: Saudi Arabia denies plans to increase production – 11/21/2022 at 19:28


File photo of the Organization of the Petroleum Exporting Countries (OPEC) logo at its headquarters in Austria

(Reuters) – Saudi Arabia said on Monday that OPEC+ was sticking to past decisions on output cuts and did not rule out further steps to balance the market amid falling prices, thus denying a report that she was planning to increase her pumping, the official SPA news agency reported.

The Wall Street Journal previously wrote that the agenda for the next meeting of OPEC and its allies, scheduled for December 4, could include a debate on increasing the group’s overall production by 500,000 barrels per day ( bpd). The article quotes OPEC delegates without specifying their nationality.

“It is well known that OPEC+ does not discuss any decision before the meeting,” Saudi Energy Minister Prince Abdulaziz bin Salman said in remarks quoted by SPA, in reference to the December meeting. .

Oil prices, which had lost up to more than 5% after the Wall Street Journal article to fall to their lowest level since January, only yielded less than 1% after the Saudi denial.

OPEC+ surprised the markets last month by deciding to significantly lower its production targets. The group reduced its pumping by 100,000 bpd in October before agreeing to a reduction of two million bpd from November, despite opposition from several countries, including the United States.

The Saudi minister told SPA that OPEC+ could further cut production if needed.

“The current OPEC+ cut of two million bpd is valid until the end of 2023 and if it is necessary to take further measures by reducing production to balance supply and demand, we are always ready to intervene,” he said.

(Reporting Ann Maria Shibu in Bangalore, Maha El Dahan and Alex Lawler; French version Claude Chendjou and Marc Angrand, editing by Kate Entringer and Tangi Salaün)

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