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Opep +: Saudi minister raises his voice against members who do not respect quotas

2020-09-17T14:50:03.085Z


Saudi Energy Minister Abdel Aziz bin Salman raised his tone Thursday against members of OPEC + who do not respect the restrictions on production promised by the alliance of oil exporters to support prices. Read also: Has oil consumption started its irreparable decline? " Full compliance is not an act of charity, it is an integral part of our collective effort ," insisted the leader of the Organi


Saudi Energy Minister Abdel Aziz bin Salman raised his tone Thursday against members of OPEC + who do not respect the restrictions on production promised by the alliance of oil exporters to support prices.

Read also: Has oil consumption started its irreparable decline?

"

Full compliance is not an act of charity, it is an integral part of our collective effort

," insisted the leader of the Organization of the Petroleum Exporting Countries (OPEC) in a speech broadcast live on youtube, ahead of a monthly meeting of the cartel and its allies.

Two bad students, Nigeria and Iraq, are regularly in the sights of the Organization and accused of exceeding the production cuts assigned to them.

Tactics to go beyond planned production quotas have been tried time and time again in the past.

They always end in failure (...) and tarnish the reputation and credibility

”of the organization, continued the half-brother of the powerful Crown Prince Mohammed ben Salman.

"

These false promises not only discredit those who make them, but weaken our collective goal

," he argued, explaining that the compensation scheme put in place for bad students should remain an exception and not be interpreted as a tacit authorization to overproduce.

Read also: Oil: the decline in global demand has begun

The thirteen cartel members and their ten allies, including Russia, meet every month to assess the effects on the market of the production cuts they impose on themselves in response to the fall in prices caused by the pandemic.

Producers decided in April to reduce their joint production by 9.7 million barrels per day (mbd) in May and June, then to gradually lighten these drastic cuts: since August 1, members of OPEC + are supposed to decrease their production to 7.7 mbd (not counting any catch-ups by latecomers) then to 5.8 mbd from January 2021 to April 2022, or even beyond.

Slightly lower before this intervention, the prices of barrels of Brent and WTI did not react, remaining around 40 dollars.

Source: lefigaro

All business articles on 2020-09-17

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