• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Saudi says OPEC+ can confront market challenges, including by cutting output

August 22, 202210:52 AM Reuters0 Comments

OPEC headquarters in Vienna, Austria
OPEC headquarters in Vienna, Austria

Saudi Arabia’s Energy Minister said OPEC+ has the means and flexibility to deal with challenges, including by cutting oil output, state news agency SPA reported on Monday, citing comments Prince Abdulaziz bin Salman made to Bloomberg.

The minister also said that paper and physical markets had become increasingly disconnected, and that a new deal between OPEC+ partners beyond 2022 would be agreed.

“Soon we will start working on a new agreement beyond 2022,” he said.

Brent crude prices pared losses sharply on the news and were trading down 55 cents at $96.17 by 1637 GMT, having earlier slipped to as low as $92.36.

The Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, agreed to increase output by 648,000 bpd in each of July and August as they fully unwind nearly 10 million bpd of cuts implemented in May 2020 to counter the COVID-19 pandemic.

The group agreed earlier this month to raise production quotas by another 100,000 bpd in September as it faced pressure from major consumers including the United States, which are keen to cool prices.

Only Saudi Arabia and the United Arab Emirates are believed to have spare capacity and the ability to increase production in a meaningful way.

But Prince Abdulaziz pointed to thin liquidity and extreme volatility taking focus away from the issue of spare capacity.

“Without sufficient liquidity, markets can’t reflect the realities of the physical fundamentals in a meaningful way and can give a false sense of security at times when spare capacity is severely limited and the risk of severe disruptions remains high,” he said.

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Canada’s weekly rig count at 246
  • Russian revenues to be hit further by caps on its oil products
  • The HWN Energy acquisition spree continues – set to acquire 642 wells, 145 facilities, 168 pipelines from Whitecap Resources
  • U.S. oil & gas rig count falls by the most in a week since June 2020
  • Canada regulator licences Equinor’s significant oil discovery offshore

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.