RIYADH
\nSaudi Arabia\u2019s Energy Minister Prince Abdulaziz bin Salman said on Sunday that the latest Opec+agreement involved comprehensive reform, but that the alliance was also working against \u201cuncertainties and sentiment\u201d within the market.
\n\u201cThat is why we had this agreement,\u201d Prince Abdulaziz said at the Arab-China business conference in the Saudi capital Riyadh, when asked what was necessary to achieve market stability.
\nHe said while the physical market was giving some signals, the futures market was saying the opposite, meaning the Opec+ alliance of producers had to \u201cremain in a state of readiness\u201d.
\nSaudi Arabia, Opec\u2019s largest exporter, announced a voluntary cut of one million barrels per day for July at an Opec+ meeting in Vienna last weekend.
\nThe group of producers also lowered its collective production target for 2024 and the nine participating countries extended voluntary cuts announced in April to the end of 2024.
\nThe United Arab Emirates secured a higher output quota which it had long been seeking \u2014 an issue that had caused tension between the group and Abu Dhabi, which has been increasing its output capacity.
\nThe prince said the new Opec+ deal would be rewarding for those who were investing to grow their production capacity.
\n\u201cIn the final analysis what this agreement will achieve for all of us is that those who invest, not this year, but the years to come, \u201924 and \u201925 and moving forward, there will be a recognition for their investment because they will be given higher production allocations.\u201d
\nConcern about the global economy dampened the oil market\u2019s reaction to Saudi Arabia\u2019s pledge to cut supply. Oil prices fell by more than a dollar per barrel on Friday to record a second straight weekly decline.<\/p>\n","protected":false},"excerpt":{"rendered":"
RIYADH Saudi Arabia\u2019s Energy Minister Prince Abdulaziz bin Salman said on Sunday that the latest Opec+agreement involved comprehensive reform, but that the alliance was also working against \u201cuncertainties and sentiment\u201d within the market. \u201cThat is why we had this agreement,\u201d Prince Abdulaziz said at the Arab-China business conference in the Saudi capital Riyadh, when asked […]<\/p>\n","protected":false},"author":2,"featured_media":337008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-336987","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n