- Khalid Al-Falihsays more action could be taken
- OPEC production down 600,000 barrels per day last December
- Next meeting planned for April
With The Organization of the Petroleum Exporting Countries (OPEC) having openly discussed and decided on cutbacks in the production of crude oil outputs, Wall Street has been wary of what is likely to happen in the short term and over longer periods.
Now Saudi Arabia’s Energy Minister has said that the oil market is “on the right track” and will find its balance sooner rather than later. However, when he made the comments on Sunday, Khalid Al-Falih also said that oil producers are willing to do even more if they deem it necessary.
Addressing an oil conference in Abu Dhabi, Al-Falih said: “If we look beyond the noise of weekly data and speculators’ herd-like behavior, I remain convinced that we’re on the right track, and that the oil market will quickly return to balance.”
“If we find that more needs to be done, we will do so in unison with our OPEC and non-OPEC partners where collaboration is essential, too,” he added.
OPEC met with other leading oil-producing countries, including Russia, last month and agreed that combined oil output would be reduced. Starting this month, a decrease of 1.2 million barrels per day is expected to prevent a buildup of excess supplies while giving weakening prices an uptick.
According to Al-Falih, secondary sources have suggested that OPEC production was already 600,000 barrels per day lower last December than it had been in the previous month.
Al-Falih claimed: “We in Saudi Arabia went beyond our commitment and have lowered both production and exports.”
The influential OPEC member’s Energy Minister went on to tell reporters that he saw no need for an unscheduled OPEC meeting before April, when the group is due to meet again to thrash out a finalized policy regarding oil output for the remainder of 2019.